The pervasiveness of microplastics (MPs) in terrestrial and aquatic ecosystems has become a significant environmental concern in recent years. Because of their slow rate of disposal, MPs are ubiquitous in the environment. As a consequence of indiscriminate use, landfill deposits, and inadequate recycling methods, MP production and environmental accumulation are expanding at an alarming rate, resulting in a range of economic, social, and environmental repercussions. Aquatic organisms, including fish and various crustaceans, consume MPs, which are ultimately consumed by humans at the tertiary level of the food chain. Blocking the digestive tracts, disrupting digestive behavior, and ultimately reducing the reproductive growth of entire living organisms are all consequences of this phenomenon. In order to assess the potential environmental impacts and the resources required for the life of a plastic product, the importance of life cycle assessment (LCA) and circularity is underscored. MPs-related ecosystem degradation has not yet been adequately incorporated into LCA, a tool for evaluating the environmental performance of product and technology life cycles. It is a technique that is designed to quantify the environmental effects of a product from its inception to its demise, and it is frequently employed in the context of plastics. The control of MPs is necessary due to the growing concern that MPs pose as a newly emergent potential threat. This is due to the consequences of their use. This paper provides a critical analysis of the formation, distribution, and methods used for detecting MPs. The effects of MPs on ecosystems and human health are also discussed, which posed a great challenge to conduct an LCA related to MPs. The socio-economic impacts of MPs and their management are also discussed. This paper paves the way for understanding the ecotoxicological impacts of the emerging MP threat and their associated issues to LCA and limits the environmental impact of plastic.