The escalating global demand for food production has predominantly relied on the extensive application of conventional fertilizers (CFs). However, the increased use of CFs has raised concerns regarding environmental risks, including soil and water contamination, especially within cereal-based cropping systems. In response, the agricultural sector has witnessed the emergence of healthier alternatives by utilizing nanotechnology and nano-fertilizers (NFs). These innovative NFs harness the remarkable properties of nanoparticles, ranging in size from 1 to 100 nm, such as nanoclays and zeolites, to enhance nutrient utilization efficiency. Unlike their conventional counterparts, NFs offer many advantages, including variable solubility, consistent and effective performance, controlled release mechanisms, enhanced targeted activity, reduced eco-toxicity, and straightforward and safe delivery and disposal methods. By facilitating rapid and complete plant absorption, NFs effectively conserve nutrients that would otherwise go to waste, mitigating potential environmental harm. Moreover, their superior formulations enable more efficient promotion of sustainable crop growth and production than conventional fertilizers. This review comprehensively examines the global utilization of NFs, emphasizing their immense potential in maintaining environmentally friendly crop output while ensuring agricultural sustainability.