Hiking in food demand to feed the mammoth increasing population, intensive agricultural practices have been the prerequisite for modern agriculture in the recent few years. Intensive agriculture and profuse crop production often rely on optimum cultivable land and excessive use of synthetic fertilizers. Despite high nutrient content, ease of availability to plants, and ability to promote faster growth, excessive application of agrochemicals has been found to pose risks to both soil health and the environment while also potentially polluting groundwater and the atmosphere in the long-term. Therefore, to overcome these challenges, biofertilizers, derived from beneficial microorganisms, offer a sustainable alternative to chemical fertilizers, contributing to soil fertility enhancement and environmental restoration. The utilization of biofertilizers promotes soil health by fostering microbial activity, improving nutrient availability, and enhancing soil structure. Moreover, biofertilizers have shown promising results in mitigating soil pollution and remediating contaminated environments through biodegradation, bioremediation, biostimulation, bioaugmentation, and phytoremediation. This chapter explores the potential applications of biofertilizers in addressing various environmental challenges, highlighting their efficacy, benefits, and limitations. Future research directions and potential advancements in biofertilizer technology for sustainable soil and environmental management are also discussed.