Water pollution remains a widespread problem, affecting the health and wellbeing of people around the globe. While current advancements in wastewater treatment and desalination show promise, there are still challenges that need to be overcome to make these technologies commercially viable. Nanotechnology plays a pivotal role in water purification and desalination processes today. However, the release of nanoparticles (NPs) into the environment without proper safeguards can lead to both physical and chemical toxicity. Moreover, many methods of NP synthesis are expensive and not environmentally sustainable. The utilization of biomass as a source for the production of NPs has the potential to mitigate issues pertaining to cost, sustainability, and pollution. The utilization of biobased nanomaterials (bio-NMs) sourced from biomass has garnered attention in the field of water purification due to their cost-effectiveness, biocompatibility, and biodegradability. Several research studies have been conducted to efficiently produce NPs (both inorganic and organic) from biomass for applications in wastewater treatment. Biosynthesized materials such as zinc oxide NPs, phytogenic magnetic NPs, biopolymer-coated metal NPs, cellulose nanocrystals, and silver NPs, among others, have demonstrated efficacy in enhancing the process of water purification. The utilization of environmentally friendly NPs presents a viable option for enhancing the efficiency and sustainability of water pollution eradication. The present review delves into the topic of biomass, its origins, and the methods by which it can be transformed into NPs utilizing an environmentally sustainable approach. The present study will examine the utilization of greener NPs in contemporary wastewater and desalination technologies.