This research paper is focused on possible application of nanomaterials in environmental remediation and sustainable energy production. Specifically, the possibilities, limitations and future perspectives of nanomaterials in this field will be discussed. Nanomaterials, including metal and metal oxide nanoparticles, carbon-based nanomaterials, nanocomposites, and photocatalytic materials have shown a considerable potential for the removal and degradation of heavy metals, dyes, pesticides, pharmaceuticals, and other new pollutants from the water and wastewater in the process of environmental remediation. As for the energy field, nanomaterials are widely used now for enhancing the efficiency of solar cells, batteries, supercapacitors, fuel cells, hydrogen generation, and photocatalytic energy conversion systems due to their capacity to provide enhanced charge transfer, catalytic activity, energy storage and light absorption capabilities. Nevertheless, problems related to nanoparticle aggregation, high cost of nanoparticle production, scalability issues, lack of stability of nanoparticles, their environmental persistence, toxicity and possible adverse effects on human health and ecosystems still present a serious problem. The use of sustainable approaches to synthesis of nanoparticles, life cycle analysis, improved recovery and recycling methods and regulatory framework are needed.