Nanotechnology is an advanced field of science having the ability to solve the variety of environmental challenges by controlling the size and shape of the materials at a nanoscale. Carbon nanomaterials are unique because of their nontoxic nature, high surface area, easier biodegradation, and particularly useful environmental remediation. Heavy metal contamination in water is a major problem and poses a great risk to human health. Carbon nanomaterials are getting more and more attention due to their superior physicochemical properties that can be exploited for advanced treatment of heavy metal-contaminated water. Carbon nanomaterials namely carbon nanotubes, fullerenes, graphene, graphene oxide, and activated carbon have great potential for removal of heavy metals from water because of their large surface area, nanoscale size, and availability of different functionalities and they are easier to be chemically modified and recycled. In this article, we have reviewed the recent advancements in the applications of these carbon nanomaterials in the treatment of heavy metal-contaminated water and have also highlighted their application in environmental remediation. Toxicological aspects of carbon-based nanomaterials have also been discussed.