Plant diseases are caused by various pathogenic microorganisms, leading to substantial economic losses and food insecurity worldwide. However, the extensive use of chemical-based nanopesticides has adverse effects on plants, soil, and environmental systems. There is increasing interest in developing eco-friendly and sustainable alternatives to manage plant diseases. Recently, microbe-mediated nanoparticles (NPs) as nanopesticides have attracted the interest of cultivators, specifically in plant disease management, compared to traditional physical and chemical approaches. This review focuses on the state-of-the-art formulations of nanopesticides by using microorganisms against bacterial and fungal phytopathogens. The article discusses the various mechanisms through which these microbes contribute to the enhanced effectiveness of NPs, including the production of bioactive compounds, improved nanoparticle synthesis, and the facilitation of targeted delivery. The review also highlights the advantages of using microbe-mediated nanopesticides, such as reduced environmental toxicity, increased biodegradability, and the potential to manage pesticide-resistant pathogens. Overall, the use of microbe-mediated NPs is an inexpensive, reliable, and eco-friendly approach for plant disease management.