As plastics become more ubiquitous, their impact on the environment and on human health cannot be overlooked. Once generated, micro‐ and nano‐plastics end‐up in the environment, causing widespread health and environmental risks. This is a significant environmental problem given the minuscule sizes of microplastics, and therefore warrants further investigation. This study presents a comprehensive review of the ecotoxicology of microplastics and methods for their degradation and decomposition besides discussing the fate and transport processes, recent progress, emerging strategies, challenges and potential future directions. The authors carefully evaluate the processes through which microplastics cause harm, from molecular interactions in species, to ecological impacts, and end with advances in microplastic biodegradation. Different kinds of microplastics found in the environment include polyethylene, polystyrene, polypropylene, polyvinyl chloride, polycarbonate, polyurethane, polypropylene, and polyethylene terephthalate. Analysis of microbial and enzymatic decomposition provides several swelling mitigation strategies designed to reduce environmental threats. In‐depth investigations of microplastic ecotoxicity and biodegradation are being facilitated by interdisciplinary proposals in the areas of nanotechnology, new analytical methods, and synthetic biology. The extensive study helps understand microplastics comprehensively which in‐turn ensures informed actions to mitigate the challenge of the environmental impact of microplastics for sustainable future.