Materials behave in a different way when they are in their nano sizes. Nanomaterials encompass a high surface-to-volume ratio, a high adsorption capacity, high sensitivity, and reactivity, hence these can be efficiently used for textile wastewater treatment. Numerous studies have shown that nanoparticles can effectively eliminate various pollutants of domestic and industrial effluent. Nanoparticles are conventionally synthesized by physical and chemical methods but these methods use toxic chemicals, complicated procedures, and expensive materials. Presently, enzymatic processes are the most preferred method as they are economically cheap and environmentally sustainable. Microorganisms, break down the metal salts into metal nanoparticles, which can be isolated and used for textile dye degradation. This review epitomizes the various biosynthesized metal and metal oxide nanoparticles by different microorganisms and if they are efficient to degrade diverse textile dyes.