Biomineralization, the use of biological systems to produce inorganic materials, has recently become an attractive approach for the sustainable manufacturing of functional nanomaterials. Relying on proteins or other biomolecules, biomineralization occurs under ambient temperatures and pressures, which presents an easily scalable, economical, and environmentally friendly method for nanoparticle synthesis. Biomineralized nanocrystals are quickly approaching a quality applicable for catalytic and optoelectronic applications, replacing materials synthesized using expensive traditional routes. Here, we review the current state of development for producing functional nanocrystals using biomineralization and distill the wide variety of biosynthetic pathways into two main approaches: templating and catalysis. Throughout, we compare and contrast biomineralization and traditional syntheses, highlighting optimizations from traditional syntheses that can be implemented to improve biomineralized nanocrystal properties such as size and morphology, making them competitive with chemically synthesized state-of-the-art functional nanomaterials.