Genetic engineering of crops provides propitious avenues to augment environmental sustainability through the improvement of crop traits, enhancement of sustainable sources of proteins and addressment of climate change challenges. In particular, the CRISPR-Cas9 technology can be employed to enhance the concentration of vital nutrients such as vitamin A, zinc and iron in crops which can confront malnutrition issues on a global scale, especially in developing nations. Genetic engineering can be used to introduce genes that augment the ability of plants to tolerate water scarcity enabling improved crop yields in drought-prone conditions. Likewise, crops with improved salt tolerance, heat and cold tolerance as well as heavy metal and herbicide tolerance can be engineered through genetic modification. Increasingly, plants are being used to generate animal protein alternatives which are more palatable, cost-effective and nutritious. Production of plant-based proteins typically requires lesser cultivation areas, energy and water in comparison to animal agriculture, thus contributing to improved environmental sustainability. Augmented crop yields and recalcitrance to stress conditions can ensure increased food security to address the dietary needs of an ever-growing global population. Genetic engineering can produce crops that are resistant to herbicides and pests, decreasing the requirement of chemical inputs and curtailing damage to the environment. Nevertheless, careful evaluation of potential challenges and risks is critical for efficacious and responsible implementation of genome engineering technologies. The current review addresses all of the above areas and provides valuable insights into engineering of crops towards increased environmental sustainability.