Nanotechnology has become a modern-age science that is now being relied upon to address the urgent need of reducing energy use, and sufficing crop nutritional demands. It has revolutionized agro-technology and has proven to be the new-age solution to climate change by imparting resilience to the system. Various types of nanoparticles such as nanofertilizers, nanopesticides, nanobiosensors, and other nanoproducts have been developed for maintaining and improving plant growth and soil quality. However, the fate of nanomaterials and their mechanism of interaction with plant, soil, and beneficial microbes are still unknown and need research. Studies showing variable results of both merits and demerits of nanomaterials on living organisms at the cellular level put forth a question if these nanomaterials are actually sustainable and environmentally safe. This monograph explores the various types of nanomaterials currently utilized in the agricultural sector and the underlying mechanisms by which nanoproduct applications enhance plant tolerance to abiotic stress. The various limitations of the use of nanomaterials in agriculture and the steps that have to be taken to avoid the harmful effects of nanomaterials in plants and microbes have also been highlighted.