Paper mills inevitably produce various pollutants, including chlorolignin, chlorophenols, chloroguaiacol, furan, cyanide, and heavy metals. These pollutants cause significant threats to aquatic and terrestrial life. The pulp and paper industries are looking for eco-friendly solutions for the disposal of effluents during paper processing. Moreover, environmental management practices are a key concern that may be addressed by removing these effluents using suitable bioremediation techniques. Therefore, we have discussed several eco-friendly nanotechnology based sustainable bioremediation technologies like the use of nanoparticles, nanomaterials, nanocomposites, nanoadsorbents, and several advanced methods such as electrocoagulation and photocatalysis, which may be utilized for the elimination of hazardous pollutants from paper industry effluents. This review finally includes critical insight into the potential use of the above-mentioned nanotechnology based interventions for mitigation of contaminants from the paper industry. Nevertheless, there are a few limitations and challenges toward implementation of such technologies, which are also discussed in this review.