Given the current environmental alterations and population growth, there is an urgent need to explore cost-effective and efficient bioremediation strategies. Currently, nanobiosurfactants have received recognition as an eco-friendly material for remediation technology, with better physicochemical properties. The mechanism of soil washing using biosurfactants and nanobiosurfactants, as well as their efficiency as detergents, is discussed in this review. Biosurfactants function by minimizing interfacial surface tension, consequently maximizing surface area to solubilize the least soluble compounds. They are armoured with both water and lipid-loving components, enabling them to form micelles. Micelles expedite the solubilization of substances that are the least soluble compounds. When in proximity with heavy metals, micelles form circular structures with a hydrophobic tail and metal particles at the core and a hydrophilic head towards the outside. The categorization of microorganisms can broadly be divided into glycolipids and lipopeptides. Pseudomonas aeruginosa has been identified as a source of biosurfactant that synthesizes rhamnolipids, while others, like Bacillus paramycoides, are responsible for synthesizing lipopeptide biosurfactant types, surfactin and iturin. A comparative analysis of the microorganisms for soil washing using rhamnolipids & surfactin biosurfactant in contrast to their nanobiosurfactant counterparts for soil washing results in distinct efficiency and varied environmental impact. The role of nanobiosurfactant in enhanced performance for the bioremediation of pollutants in soil can help in reducing the pollutant level and make it appropriate for agricultural use again.