This review explores advancements, challenges, and considerations in photocatalytic dye degradation for sustainable wastewater treatment. It highlights smart photocatalyst design, visible‐light‐responsive materials, and co‐catalyst engineering, which enhance system efficacy. Despite environmental concerns, the eco‐friendly aspects of photocatalysis offer a promising alternative to traditional methods. Future perspectives emphasize nanotechnology's role in developing effective photocatalysts and integrating visible‐light and solar‐driven systems to meet sustainability goals. Efforts in co‐catalyst engineering and reactor design aim to optimize processes, addressing kinetic and scalability challenges, while economic research focuses on reducing costs to improve competitiveness.