Agricultural plastic mulching is an important horticultural process for increasing crop yields because it preserves soil moisture, soil temperature, and nutrients, and avoids the need for weed herbicides. However, there are risks to using plastic mulch, since residual macroplastic (MaP), microplastic (MP), and nanoplastic (NP) in fields have a significant negative impact on the environment, causing damage to soil properties, harming microorganisms in the soil, and entering the human body via the food chain. Plastic mulch is often disposed of in landfills or used in techniques like the thermal process to gain energy or recycling to generate plastic granules for the plastic industry. Pretreatments are occasionally required before recycling, such as cleaning the mulch from the soil to fit the recycling process. This review provides an overview of the quantities and negative impacts of plastic, especially plastic mulch films after use, as well as their decomposition products, on the environment, soil, and human health, and presents alternatives. The possibilities and problems of collecting and recycling films are discussed in addition to the alternatives, for example, the use of biodegradable films. Overall, agricultural advancements to reduce plastic waste in the environment by using thicker films, collection after use, and recycling in developed countries are on a good path. However, NP poses a risk, as it is still completely unclear how it affects human health. Alternatives to plastic mulch have found little acceptance so far due to the significantly higher material costs.