Wastewater treatment and reuse represent sustainable practices, involving the treatment and subsequent use of wastewater for various beneficial purposes. Recent statistics indicate that approximately 62.5% of wastewater remains untreated. Treated wastewater plays a crucial role in conserving valuable freshwater resources, alleviating stress on surface water bodies, and ensuring a dependable water supply in regions grappling with water scarcity. This review examines numerous research articles on wastewater reutilization, emphasizing advancements in Internet of Things (IoT)-based monitoring and management systems. Key findings highlight a 28% increase in wastewater reuse efficiency, driven by IoT-enabled systems that enhance real-time monitoring, optimize treatment processes, and enable predictive maintenance. Notably, the proposed integrated framework achieves up to a 97.98% improvement in water quality standards, showcasing the potential for IoT in addressing water scarcity challenges. This comprehensive analysis aims to inform and guide researchers toward developing innovative solutions for wastewater treatment and reuse.