The use of low and no calorie sweeteners (LNCSs) has increased substantially the past several decades. Their high solubility in water, low absorption to soils, and reliable analytical methods facilitate their detection in wastewater and surface waters. Low and no calorie sweeteners are widely used in food and beverage products around the world, have been approved as food additives, and are considered safe for human consumption by the United States Food and Drug Administration (USFDA) and other regulatory authorities. Concerns have been raised, however, regarding their growing presence and potential aquatic toxicity. Recent studies have provided new empirical environmental monitoring, environmental fate, and ecotoxicity on acesulfame potassium (ACE‐K). Acesulfame potassium is an important high‐production LNCS, widely detected in the environment and generally reported to be environmentally persistent. Acesulfame‐potassium was selected for this environmental fate and effects review to determine its comparative risk to aquatic organisms. The biodegradation of ACE‐K is predicted to be low, based on available quantitative structure–activity relationship (QSAR) models, and this has been confirmed by several investigations, mostly published prior to 2014. More recently, there appears to be an interesting paradigm shift with several reports of the enhanced ability of wastewater treatment plants to biodegrade ACE‐K. Some studies report that ACE‐K can be photodegraded into potentially toxic breakdown products, whereas other data indicate that this may not be the case. A robust set of acute and chronic ecotoxicity studies in fish, invertebrates, and freshwater plants provided critical data on ACE‐K's aquatic toxicity. Acesulfame‐potassium concentrations in wastewater and surface water are generally in the lower parts per billion (ppb) range, whereas concentrations in sludge and groundwater are much lower (parts per trillion [ppt]). This preliminary environmental risk assessment establishes that ACE‐K has high margins of safety (MOSs) and presents a negligible risk to the aquatic environment based on a collation of extensive ACE‐K environmental monitoring, conservative predicted environmental concentration (PEC) and predicted no‐effect concentration (PNEC) estimates, and prudent probabilistic exposure modeling. Integr Environ Assess Manag 2020;16:421–437. © 2020 The Authors. Integrated Environmental Assessment and Management published by Wiley Periodicals, Inc. on behalf of Society of Environmental Toxicology & Chemistry (SETAC)