The ever-increasing importance of green-based iron nanoparticles within the last decade and their environmental applications is a compelling reason to probe novel routes for their synthesis. Therefore, the principles of green chemistry, waste prevention, energy efficiency, safer solvents, and the benign precursor materials have become fundamental considerations in the synthesis process of these materials, birthing extensive study in this field. In this light, a comprehensive discussion of the successes of greener techniques and other biological nanotechnologies including the use of microorganisms (fungi, bacteria, actinomycetes, and viruses), algae, plant and their extracts for the synthesis of iron (Fe) nanoparticles (NPs) is presented. Although promising findings have been reported, substantial research gaps and the opportunity to capitalize on the emergence and rise of these eco-friendly sources have been identified. The application of synthesized nanoparticles for environmental remediation and their toxicological implications are also discussed.