Nanotechnology plays an important role in current environmental practices for remediation of contaminants in environment. From last few years, nano-clay has found more attention because of its unique characteristics and properties. Clay and clay minerals are very important naturally occurring mineral playing key role in environmental protection. Clay basically originates from raw minerals, having different types of geometry and morphology. These clay minerals have been used in disposal and storage of hazardous chemicals as well as for remediation of contaminated water. In several industries, clay minerals have been used as raw materials for hundreds of industrial applications due to its abundant availability and inexpensive nature. Because of unique properties and high removal efficiency, clay is used as nano-adsorbent in many adsorption processes. Nano-clays act as a promising property enhancer found highly effective and efficient for water purification. The use of clay minerals as adsorbents for adsorption of various hazardous substances like-heavy metals, dyes, antibiotics, biocide compounds, and other organic chemicals has been widely studied by a large number of researchers. In the present review paper, authors highlights the nano-composites and their preparation methods, adsorption mechanism and has compiled the past and current research works carried out by different researchers on innovation in nanoclay, upcoming advancement, and/or mechanism for removal of contaminants by different nanoclays for water purification.