Cyanobacteria, renowned for their nitrogen‐fixing characteristics, are important for sustainable biomanufacturing and agricultural innovation. This review explores the synergy between cyanobacteria and nitrogen fixation, highlighting their potential to revolutionize biobased compound production and reduce the ecological impact of traditional nitrogen sources. It focuses on genetic enhancements and synthetic biology techniques, which transform these microorganisms into sustainable nitrogen providers. Current applications range from agricultural enhancement to cutting‐edge biotechnology, highlighting the important consequences of cyanobacterial nitrogen fixation. Challenges persist, however, requiring a meticulous analysis of ecological, regulatory, and scalability concerns. The untapped potential of cyanobacteria in nitrogen fixation promises a significant shift in biomanufacturing and environmental stewardship. The aim of this article is to inspire high‐impact research and transformative applications in biotechnology and sustainability.