A wide variety of pollutants are discharged into water bodies like lakes, rivers, canal, etc. due to the growing world population, industrial development, depletion of water resources, improper disposal of agricultural and native wastes. Water pollution is becoming a severe problem for the whole world from small villages to big cities. The toxic metals and organic dyes pollutants are considered as significant contaminants that cause severe hazards to human beings and aquatic life. The microbial fuel cell (MFC) is the most promising, eco-friendly, and emerging technique. In this technique, microorganisms play an important role in bioremediation of water pollutants simultaneously generating an electric current. In this review, a new approach based on microbial fuel cells for bioremediation of organic dyes and toxic metals has been summarized. This technique offers an alternative with great potential in the field of wastewater treatment. Finally, their applications are discussed to explore the research gaps for future research direction. From a literature survey of more than 170 recent papers, it is evident that MFCs have demonstrated outstanding removal capabilities for various pollutants.