Fertilizers are commonly used by farmers to fulfill the nutritional requirement to enhance plant growth and play an important role in increasing agricultural production globally. Over a period of time, prolonged use of chemical fertilizers causes an adverse impact on the environment by releasing the chemical residue and agricultural runoff. It affects soil fertility, reduces crop production, causes the emergence of new races of pests and pathogens, and causes low nutrient efficiency, high leaching of minerals, and depletion of soil organic content. Due to the drastic effect on the environment and human health, various researchers, scientists, and environmentalists have looked forward to searching for an eco-friendly approach to achieve desired goals and increase agricultural food production. Nanotechnology is the most promising tool in agriculture and other related fields. Biofertilizers, nano-biofertilizers, nanofertilizers, and nanopesticides are nanotechnology-based fertilizers. Nano-biofertilizers are safe, low-cost, non-hazardous, and eco-friendly in nature. Globally, the biofertilizers market was estimated at around $1.49 billion in 2019, developing at a compound annual growth rate of around 12.8% from 2020 to 2027. Nano-biofertilizers have the ability to increase crop productivity and minimize environmental residues. They boost the water-holding capacity of soil and provide vital plant nutrients due to the coating of a nanomaterial as well as microbial revitalization due to organic content having plant growth promoters either directly or indirectly (biofertilization, rhizoremediation, disease resistance, etc.). Contrary to traditional chemical fertilizers, nano-biofertilizer gives a better result. It upgrades the texture and function of soil and improves various attributes of plants such as physiological, biochemical, morphological, and, most importantly, yield attributes. There is a scarcity of literature on the formulation and application of nano-biofertilizer at the ground level. This smart fertilizer necessitates consideration, as it diminishes the utilization of chemical fertilizer and makes the environment, soil, and crop healthier. This chapter highlighted the niftiness of nano-biofertilizers as an eco-friendly approach to sustainable agriculture. It covers the status, formulation, application, and constraints of nano-biofertilizers and their sustainable future in agriculture. The chapter also focused on the role of nano-biofertilizer in augmenting the growth and development of crops and their protection.