Graphene-based materials have gained a lot of scientific interest in the research era of modern technology, which can be quite flexible. Graphene has become popular as a potential material for the manufacture of a wide range of technologies due to its remarkable electrical, mechanical, and optical traits. Due to these excellent characteristics, the derivatives of graphene can be functionalized in various applications including environmental, medical, electronic, defence applications, and many more. In this review paper, we discussed the different synthesis methods for the extraction of graphene and its derivatives. The different traits of graphene and its derivatives such as structural, mechanical, and optical were also discussed. An extensive literature review on the application of graphene-based composites is presented in this work. We also outlined graphene’s potential in the realm of environmental purification through different techniques such as filtration, adsorption, and photocatalysis. Lastly, the challenges and opportunities of graphene and its derivatives for advanced environmental applications were reported.