Chalcogenide materials have garnered significant attention as potential solutions for sustainable energy and environmental applications, attributed to their distinct properties and inherent advantages. This comprehensive review critically examines chalcogenide nanomaterials’ emergence, synthesis, and fabrication methodologies, emphasizing their applicability across various domains, such as energy storage and conversion, photovoltaics, waste management, and water treatment processes. Furthermore, the utilization of chalcogenide nanomaterials in combating air pollution, promoting sustainable agricultural practices, and facilitating biomedical advancements is investigated. The review also encompasses an in-depth analysis of ecotoxicity and environmental safety concerns, regulatory frameworks, and policy implications for adopting chalcogenide nanomaterials. Despite the challenges and future research directions in chalcogenide nanomaterials, their global influence on sustainable development is indisputable. In conclusion, this review stresses the promising prospects of chalcogenide nanomaterials within environmental applications, underlining their potential to reshape the landscape of sustainable energy and environmental technologies.