Essential for human development, water is increasingly polluted by diverse anthropogenic activities, containing contaminants like organic dyes, acids, antibiotics, inorganic salts, and heavy metals. Conventional methods fall short, prompting the exploration of advanced, cost-effective remediation. Recent research focuses on sustainable adsorption, with nano-modifications enhancing adsorbent efficacy against persistent waterborne pollutants. This review delves into recent advancements (2020–2023) in sustainable biopolymeric nanocomposites, spotlighting the applications of biopolymers like chitosan in wastewater remediation, particularly as adsorbents and filtration membranes along with their mechanism. The advantages and drawbacks of various biopolymers have also been discussed along with their modification in synthesizing biopolymeric nanocomposites by combining the benefits of biodegradable polymers and nanomaterials for enhanced physiochemical and mechanical properties for their application in wastewater treatment. The important functions of biopolymeric nanocomposites by adsorbing, removing, and selectively targeting contaminants, contributing to the purification and sustainable management of water resources, have also been elaborated on. Furthermore, it outlines the reusability and current challenges for the further exploration of biopolymers in this burgeoning field for environmental applications.