Engineered nanomaterials offer exciting application opportunities in diverse fields ranging from biomedical, agriculture, environmental, cosmetics to household commodities. Increasing use of nanomaterials in day-today applications has also increased their exposure to environment and ecosystems significantly, which has raised the concern for environmental safety due to their potential adverse and toxicological effects on microbial community. Although several risk and safety assessment studies to evaluate the fate of nanoparticle in the environment and their effect on living organisms are being carried out in the recent years, still the current knowledge on impact of these nanomaterials on microorganisms is limited. The present review comprehensively summarizes and interprets the impact of nanomaterials on microbial community. Further, the technical challenges associated with the nanotoxicity evaluation, data interpretation and environmental regulations with respect to engineered nanomaterials are discussed.