Plant life has dominated this planet from the beginning of time. With over 82% of biomass (BM) coming from plants, primarily trees, plants are the dominant form of life on Earth. BM represents a readily available, ecologically favorable, and renewable low‐cost carbon source. Its rational disposal has emerged as a critical challenge in modern times due to its widespread generation from farming, manufacturing, and forestry activities. Nanotechnology (NT) has enormous potential for a wide range of BM‐related applications, including BM development, processing technique, modification, and utilization. Richard Feynman, a physicist who later won the Nobel Prize in Physics, presented a discussion in 1959 titled “There's Plenty of Room at the Bottom.” This address was the beginning of the New Theory of Physics, which is NT, where he discusses the potential of NT for manipulating matter at the atomic level. In recent years, there has been a significant surge in interest surrounding carbon nanomaterials (CNMs), specifically carbon nanotubes (CNTs) and graphene. These materials have captured the interest of researchers due to their extraordinary characteristics and widespread applications. Utilizing BM as a source shows great potential in creating functional carbon materials (CMs) due to its sustainability, affordability, and high carbon content. Nowadays, CNMs derived from BM have been a popular area of study. Various structures, synthesis techniques, and widespread applications of CNMs have been documented. Thus, this review provides a detailed overview that outlines the latest technological advancements in the fabrication of BM‐derived CMs. It also studies the production of high‐value‐added CNMs from BM and delves into the utilization of BM‐based CNMs as a precursor for textile wastewater treatment. Furthermore, this study also outlines the progress of BM‐derived CNMs in supercapacitors (SCs), sensors, battery electrode materials, fuel cells (FCs), and E‐textiles, showcasing their pivotal role in advancing sustainable technologies for the future.