The increasing prevalence of water contamination poses significant threats to environmental and public health. Traditional remediation methods often fall short in efficiency, sustainability, and cost-effectiveness, necessitating the exploration of alternative solutions. Biosurfactants, with their biodegradability, low toxicity, and high specificity, present a promising avenue for enhancing water remediation. However, the diverse types and complex mechanisms of biosurfactants require a thorough understanding to fully harness their potential. This review article addresses this need by compiling and synthesizing existing knowledge on biosurfactants to offer a detailed examination of their types, mechanisms, and applications in water remediation. By doing so, it aims to provide a valuable resource for researchers, practitioners, and policymakers to facilitate informed decision-making and foster the development of innovative, sustainable remediation strategies. The article also identifies current challenges and future research directions to guide efforts toward overcoming obstacles and optimize the use of biosurfactants in environmental applications.