The integration of nanotechnology into agriculture through nano-biofertilizers offers a sustainable solution to modern agricultural challenges. These novel formulations combine nanoparticles with biofertilizers, enhancing nutrient use efficiency and promoting improved soil health compared to conventional fertilizers. Various nanoparticles, synthesis methods, formulation mechanisms, and application approaches for nano-biofertilizers are examined in detail, showcasing their potential in sustainable agriculture. However, considerations regarding environmental impact, long-term soil health effects, and regulatory frameworks are crucial for the responsible adoption of nano-biofertilizers. This chapter highlights the multifaceted benefits of nano-biofertilizers in optimizing crop productivity while minimizing environmental harm. Herein, we underscore the need for further research to optimize production scale-up, testing procedures, and regulatory frameworks, ensuring the safe and effective implementation of this innovative technology. Additionally, we emphasize the potential of nanotechnology in biofertilizers to transition agriculture towards a more sustainable and environmentally friendly future.