Access to clean water remains a critical global challenge, with traditional water treatment methods often failing to eliminate complex pollutants such as pharmaceuticals, dyes, and antibiotics. Cold atmospheric plasma technology offers a promising solution by generating reactive oxygen and nitrogen species at room temperature, effectively degrading these contaminants and inactivating pathogens. Recent advancements in cold plasma have shown significant potential in water treatment applications. Cold plasma has demonstrated efficacy in disrupting bacterial biofilms, reducing antibiotic contaminants, and degrading complex organic pollutants, making it an innovative and eco-friendly alternative to conventional methods. This review examines the principles of plasma technology, evaluates its performance in water sanitation, and addresses the challenges of scalability and economic feasibility. By integrating cold plasma into existing water treatment systems and developing standardized protocols, this technology can significantly contribute to sustainable water management and public health, supporting the Sustainable Development Goals (SDGs).