For many years, efforts have been made to reduce the flammability of unsaturated polyester resins (UPRs), which are often used in the rail, shipbuilding, and construction industries. Without modification, they often fail to meet fire safety standards. Despite a rich history of flame retardants (FRs) applied to UPRs, researchers seek new solutions that will provide lower flammability and smoke density, as well as attaining a lower environmental impact from the composites. The objective of the study is to highlight the most important recent research on promising nano FRs in order to promote their further development. Mechanisms of action of several groups of nano FRs, such as clay-based, carbon-based, transition metal compounds, layered double hydroxides, polyhedral oligomeric silsesquioxanes, and others, including bio-based, have been studied. Particular emphasis has been laid on nano FRs applied to UPRs, and their influences on thermal stability, flammability, and mechanical properties. Moreover, the environmental impact and toxicity of nano FRs have been discussed. Results have proved that nano FRs applied at low loadings may significantly improve thermal stability, with a simultaneous increase or only a slight decrease in mechanical properties. However, attention on related environmental issues has highlighted the necessity of carefully selecting novel nano FRs.