Biohydrogen is considered a green fuel due to its eco‐friendly nature since it only produces water and energy on combustion. However, their lower yield and production rate is one of the foremost challenges that need an instant sustainable approach. The use of nanotechnology is a potential approach for the enhanced generation of biohydrogen, owing to the significant characteristics of the nanomaterials such as greater specificity, high surface‐area‐to‐volume ratio, better reactivity and dispersibility, enhanced catalytic activity, superb selectivity, greater electron transfer, and better anaerobic microbiota activity. This article explores the recent trends and innovations in the production of biohydrogen from wastewater through the applications of different nanomaterials. The potential of various nanomaterials employed for biohydrogen production from wastewater is evaluated and the impacts of important parameters such as the concentration and size of the nanomaterials, temperature, and pH on the production and yield of biohydrogen are explained in detail. Several pathways involved in the mechanistic approach of biohydrogen generation from wastewater are critically assessed. Lastly, numerous technological challenges are highlighted and recommendations regarding future research are also provided.