Degradation and pollution of land resources is a severe issue worldwide. Rapid urbanization and increased food demand have necessitated the restoration of degraded and highly contaminated land resources in a sustainable manner. The role of soil microorganism in maintaining nutrient balance, texture, fertility, and soil health is widely acknowledged. Cyanobacteria, one of the major components of soil microbiota, have been explored for their role as biofertilizers in improving plant growth and increasing soil fertility; however, less attention has been paid to their potential in restoring degraded lands. Cyanobacteria aids in nutrient cycling, production of plant growth‐promoting substances, desalination, and degradation of diverse organic as well as inorganic contaminants. They use diverse mechanisms for bioremediation (such as biosorption, bioaccumulation, and biotransformation) of contaminants in addition to the specific mechanism employed. They occur in symbiotic relationships with various hosts in natural as well as anthropogenically disturbed environments. Therefore, their use in restoration of highly degraded lands is justified and needs to be recognized worldwide. Identifying and exploring cyanobacterial species thriving in stress conditions and multiomics approaches would help in reconnoitering the complex plant–soil‐cyanobacteria interactions and enable scientists to design robust and well‐integrated biotechnological tools for soil remediation. Nevertheless, several technical challenges need to be addressed for rendering cyanobacteria as a realistic and viable bioasset. In this article, we summarize the role of cyanobacteria in addressing the reclamation of various types of degraded and polluted soils. And, it also examines the remaining knowledge gaps that limit its applicability in diverse environmental settings in a sustainable manner.