The escalating contamination of global water resources from industrial, agricultural, and domestic effluents underscores the urgent need for innovative wastewater treatment strategies. Metal-based nanoparticles (NPs) have revolutionized water purification because of their large surface area, strong reactivity, and adjustable physicochemical properties. This review explores the applications of NPs, such as zinc, iron, silver, titanium dioxide, cerium oxide, manganese oxide, and magnesium oxide in removing heavy metals, dyes, organic pollutants, and microbial pathogens from wastewater. The key mechanisms, including adsorption, filtration, photocatalysis, and redox reactions were critically analyzed, highlighting their superior efficiency in pollutant removal and water purification. The review also emphasized recent advancements in hybrid nanocomposites and functionalized NPs, which enhance selectivity and removal performance. Factors, such as nanoparticle size, surface charge, pH, and contact time influencing pollutant removal efficiency. Photocatalysis and redox mechanisms stand out for their eliminating complex pollutants into non-toxic byproducts, making them invaluable in addressing bioaccumulation and environmental risks. Despite these promising advancements, challenges persist, including potential nanoparticle toxicity, environmental persistence, and the scalability of these technologies. Future research should prioritize green synthesis methods, cost-effective production, and long-term environmental impact assessments. Integrating NPs with advanced treatment technologies, such as membrane filtration and oxidation processes, could offer a sustainable and scalable solution to global water scarcity and pollution. This review underscores the critical role of nanotechnology in developing efficient, eco-friendly wastewater treatment systems to ensure water security and environmental sustainability.