Green chemistry has evolved itself as a recent trend in modern science for its cost-effective and environmentally benign nature. In the present era, recent improvements in nanoscience and nanotechnology have led to the development of novel nanomaterials which are eco-friendly and safe for human use. Nanomaterials synthesized using green techniques play an important role in the application of nanotechnology in different areas. The nanoparticles synthesized by utilizing various biological methods have many applications in biological and medicinal fields. Several studies have suggested the use of metal and metal oxide nanoparticles prepared using this method for their use as antibacterial, -cancer, -mycotic, and -viral activity in therapeutic and diagnostic applications. This article encompasses the utility and role of eco-friendly nanotechnology, green approaches to nanoparticle synthesis along with its limitations and challenges.