Regarding the incremental shortage of water resources, wastewater treatment is essential for guarding the ecosystem and the sufficient usage of water resources. Freshwater, a vital item of life for humans and animals, is in danger because of the existence of destructive pollutants, such as p‐nitrophenol (p‐NP), and organic azo dyes, leading to water pollution. Among environmental pollution, water pollution has been recognized as one of the important threat agents in charge of many illnesses in humans. Nitrophenols contain high stability and solubility in water, which causes health risks. It is essential to change these harmful chemicals into healthy materials to have a safe life on the globe. Nitro compounds obtained from industrial wastewater are a severe threat to human being health and living organisms. Hence, designing green strategies and environment‐friendly catalysts to reduce toxic contaminants such as nitro compounds and dyes is a considerable challenge. One technique to overcome this crisis is the catalytic hydrogenation of nitro compounds to the amines, which are invaluable and non‐toxic materials. Reducing nitroarenes can be synthesized the amines, vital intermediates in organic and biological chemistry. Designing green strategies in nitro reduction processes for synthetic organic chemists is a great challenge. The nitroarene reduction reaction is a very efficient, reliable, and environmentally friendly method for synthesizing amines. Cyclodextrin (CD) can be applied as an effective catalyst in many aqueous organic reactions. Their derivatives have exhibited outstanding performance in water‐mediated organic synthesis and are now of ongoing attraction to many scientists in various fields. CDs show better catalytic activity and selectivity due to their particular geometry and structural interactions. CDs catalyzed reactions have been getting significant attention recently due to their low toxicity, biodegradability, economically and eco‐friendly behavior. Many reports are available in the literature on CDs material considered promising catalysts in reducing nitro compounds. This review article focuses on the use of β‐CD catalyst systems as valuable catalysts in the hydrogenation of nitroarenes and overviews articles up to 2023.