Green nanomaterials can mitigate ecological concerns by minimizing the impact of toxic contaminants on human and environmental health. Biosynthesis seems to be drawing unequivocal attention as the traditional methods of producing nanoparticles through chemical and physical routes are not sustainable. In order to utilize plant biomass, the current review outlines a sustainable method for producing non-toxic plant biomass-based nanoparticles and discusses their applications as well as recent trends involved in the remediation of contaminants, like organic/inorganic pollutants, pharmaceuticals, and radioactive pollutants from aquatic ecosystems. Plant biomass-based nanoparticles have been synthesized using various vegetal components, such as leaves, roots, flowers, stems, seeds, tuber, and bark, for applications in water purification. Phyto-mediated green nanoparticles are effectively utilized to treat contaminated water and reduce harmful substances. Effectiveness of adsorption has also been studied using variable parameters, e.g., pH, initial contaminant concentration, contact time, adsorbent dose, and temperature. Removal of environmental contaminants through reduction, photocatalytic degradation, and surface adsorption mechanisms, such as physical adsorption, precipitation, complexation, and ion exchange, primarily due to varying pH solutions and complex functional groups. In the case of organic pollutants, most of the contaminants have been treated by catalytic reduction and photodegradation involving the formation of NaBH, HO, or both. Whereas electrostatic interaction, metal complexation, H-bonding, π- π associations, and chelation along with reduction have played a major role in the adsorption of heavy metals, pharmaceuticals, radioactive, and other inorganic pollutants. This review also highlights several challenges, like particle size, toxicity, stability, functional groups, cost of nanoparticle production, nanomaterial dynamics, and biological interactions, along with renewability and recycling of nanoparticles. Lastly, this review concluded that plant-biomass-based nanoparticles provide a sustainable, eco-friendly remediation method, utilizing the unique properties of nanomaterials and minimizing chemical synthesis risks.