Nanotechnology has emerged as an extraordinary and rapidly developing discipline of science. It has remolded the fate of the whole world by providing diverse horizons in different fields. Nanomaterials are appealing because of their incredibly small size and large surface area. Apart from the naturally occurring nanomaterials, synthetic nanomaterials are being prepared on large scales with different sizes and properties. Such nanomaterials are being utilized as an innovative and green approach in multiple fields. To expand the applications and enhance the properties of the nanomaterials, their functionalization and engineering are being performed on a massive scale. The functionalization helps to add to the existing useful properties of the nanomaterials, hence broadening the scope of their utilization. A large class of covalent and non-covalent functionalized nanomaterials (FNMs) including carbons, metal oxides, quantum dots, and composites of these materials with other organic or inorganic materials are being synthesized and used for environmental remediation applications including wastewater treatment. This review summarizes recent advances in the synthesis, reporting techniques, and applications of FNMs in adsorptive and photocatalytic removal of pollutants from wastewater. Future prospects are also examined, along with suggestions for attaining massive benefits in the areas of FNMs.