The utilization of nanomaterials in wastewater treatment processes has garnered considerable attention due to their unique physicochemical properties and multifaceted applications. This expanded review delves deeper into the transformative impact of nanomaterials on wastewater treatment processes, offering a comprehensive analysis of recent advancements and emerging trends in the field. Nanomaterials, including nanoparticles, nanocomposites, and nanocatalysts, have demonstrated remarkable efficacy in enhancing pollutant removal efficiency, facilitating resource recovery, and promoting environmental sustainability in wastewater treatment systems. Through a detailed examination of key studies and case examples, this review elucidates the diverse mechanisms by which nanomaterials augment treatment performance, including adsorption, catalysis, and membrane filtration. Moreover, it explores the synergistic effects of integrating nanomaterials with conventional treatment technologies, such as activated sludge processes, membrane bioreactors, and advanced oxidation processes, to achieve superior treatment outcomes. In addition to their efficacy in pollutant removal, nanomaterials offer promising prospects for mitigating emerging contaminants, such as pharmaceuticals, personal care products, and microplastics, which pose significant challenges to traditional treatment methods. However, the widespread adoption of nanomaterial-based technologies in wastewater treatment is not without its challenges and considerations. This review addresses critical issues surrounding the environmental fate and impact of nanomaterials, including their potential ecotoxicological effects, persistence in the environment, and regulatory implications. Furthermore, the review underscores the importance of addressing knowledge gaps and advancing research efforts to optimize the design, synthesis, and application of nanomaterials for sustainable wastewater treatment. Future research directions include the development of eco-friendly synthesis methods, assessment of long-term environmental implications, and integration of nanomaterials into holistic water management strategies. By harnessing the transformative potential of nanomaterials and leveraging interdisciplinary collaborations, the wastewater treatment sector can capitalize on innovative solutions to address the pressing challenges of water pollution and scarcity, fostering a cleaner, healthier, and more sustainable environment for future generations.