Industrialization plays a crucial role in the economic development of a country; however, the effluents produced as byproducts generally contain toxic substances that are detrimental to living organisms. In this regard, remediation technologies are grabbing the attention of scientists and technologists worldwide to treat toxic industrial effluents before exposing them to the natural environment. Microbial nanotechnology, an amalgamation of the utilization of biotechnology at the micro-level and technological advancements at the nano-level has provided a platform for greener and cleaner remediation methodologies towards sustainable development. This chapter concisely compiles the various aspects of microbial technology that has positively influenced the nuances of nanotechnology for accomplishing remediation of various industrial effluents by removal, immobilization, and detoxification strategies. Subsections include the basics, importance, accomplishments, and challenges of the bioremediation capacity of microorganisms such as bacteria, fungi, algae, and genetically engineered microbes. Another important aspect that is highlighted in this book chapter is the comprehensive understanding of major detoxification pathways and bioremediation technologies. The chapter concludes with an emphasis on the paradigm shift in exploiting nanobiotechnology towards a circular economy wherein the waste can be further processed into nanocomposites amongst others thereby, boosting the prospects of integrating Small and Medium Enterprises (SMEs) into the circular economy.