As the global population reaches eight billion, large quantities of wastewater (domestic, industrial, livestock) need to be treated in an efficient, green, and environmentally friendly manner. Wastewater hydroponics technology (HP) can efficiently remove various pollutants (conventional and emerging pollutants, heavy metals, and microorganisms) and create economic benefits. This paper aims to systematically review the principles, applications, and limitations of wastewater hydroponics technology in the context of pollution and nutrient removal. Unlike constructed wetlands, wastewater hydroponics has been proven to be effective in removing pollutants through small-scale in situ restoration. For instance, the average removal of COD, total nitrogen (TN), total phosphorus (TP), copper (Cu), and zinc (Zn) was more than 70%, 60%, 80%, 64.2%, and 49.5%, respectively. However, HP technology still has the disadvantages of high energy consumption, complex control parameters, and low public acceptance of using wastewater for planting crops. Therefore, further research is needed to reduce system energy consumption. In addition, hybrid technologies, such as two-stage hydroponics that use aquatic plants (algae or aquatic floating weeds) to recycle pollutant-containing wastewater nutrients for hydroponics, should be further developed.