Global water scarcity and water pollution necessitate wastewater reclamation for further use. As an alternative to conventional techniques, membrane technology is extensively used as an advanced method for water purification and wastewater treatment due to its selectivity, permeability, and efficient removal of pollutants. However, microbial biofouling is a major threat that deteriorates membrane performance and imparts operational challenges. It is a natural phenomenon caused by the undesirable colonization of microbes on membrane surfaces. The economic penalties associated with this menace are enormous. The traditional preventive measures are dominated by biocides, toxic chemicals, cleaners and antifouling surfaces, which are costly and often cause secondary pollution. Recent focus is thus being directed to promote inputs from nanotechnology to control and mitigate this major threat. Different anti-microbial nanomaterials can be effectively used to prevent the adhesion of microbes onto the membrane surfaces and eliminate microbial biofilms, to provide an economical and eco-friendly solution to biofouling. This review addresses the formation of microbial biofilms and biofouling in membrane operations. The potential of nanocomposite membranes in alleviating this problem and the challenges in commercialization are discussed. The antifouling mechanisms are also highlighted, which are not widely elucidated.