Biodiversity, soil, air, and water are the vital life-supporting systems of this planet Earth. However, the deliberate and accidental introduction of invasive alien plants (IAPs) in the Anthropocene majorly due to the global international trade perturbed the homeostasis of our biosphere. IAPs are considered as one of the major drivers of biodiversity loss and ecosystem degradation. The pervasive threats of IAPs to environmental sustainability and biosecurity are further exacerbated under the COVID-19 pandemic. The environmental disturbances resulting from IAPs can be attributed to several mechanisms/ hypothesis (e.g., novel weapon (NW), enemy release (ER), and evolution of increased competitive ability (EICA), efficient reproductive attributes, and phenotypic plasticity, etc.) deployed by IAPs. Nevertheless, the interrelationship of IAPs with environmental degradation and restoration remain elusive especially in terms of ecological sustainability. Moreover, there is a dearth of studies which empirically assess the synergies of IAPs spread with other anthropogenic disturbances such as climate and land-use change. In this context, the present review is aimed to depict the impacts of IAPs on environment and also to assess their role as drivers of ecosystem degradation. The restoration prospects targeted to revitalize the associated abiotic (soil and water) and biotic environment (biodiversity) are also discussed in detail. Furthermore, the effects of IAPs on socio-economy, livelihood, and plant-soil microbe interactions are emphasized. On the other hand, the ecosystem services of IAPs such as associated bioresource co-benefits (e.g., bioenergy, phytoremediation, biopolymers, and ethnomedicines) can also be vital in sustainable management prospects. Nevertheless, IAPs-ecological restoration interrelationship needs long-term pragmatic evaluation in terms of ecological economics and ecosystem resilience. The incorporation of 'hybrid technologies', integrating modern scientific information (e.g., 'biorefinery': conversion of IAPs feedstock to produce bioenergy/biopolymers) with traditional ecological knowledge (TEK) can safeguard the environmental sustainability in the Anthropocene. Importantly, the management of IAPs in concert with circular economy principles can remarkably help achieving the target of UN Sustainable Development Goals and UN-Decade on Ecosystem Restoration.