Nanotechnology greatly enhances wastewater treatment by employing nanomaterials like nanoparticles, carbon nanotubes, and graphene derivatives to improve pollutant removal through better adsorption, degradation, and filtration processes. However, these materials also pose environmental and safety concerns due to their minuscule size, high reactivity, and potential for persistence in aquatic environments. Issues include toxicity to aquatic life, risks of bioaccumulation, and health hazards from exposure. Addressing these challenges requires effective risk management strategies, including robust regulatory frameworks and safety practices. Nanomaterials, such as metal nanoparticles, carbon-based materials, polymer-based nanomaterials, composites, and quantum dots, offer various mechanisms for pollutant removal like adsorption, photocatalysis, and magnetic separation. Nevertheless, their environmental and health impacts necessitate comprehensive risk assessment and responsible use. A thorough understanding of the lifecycle of nanomaterials, from synthesis to disposal, is essential for mitigating these risks. The discussion underscores the benefits, risks, and necessary management strategies for nanomaterials in wastewater treatment, highlighting the need for improved safety protocols and regulatory measures.