Large quantities of sludge known as water treatment residuals (WTRs) are generated from water treatment facilities across the world. Various attempts have been made to reuse these residuals. Among the different applications of WTRs, their reuse in water and wastewater treatment has received more attention. However, direct application of raw WTRs is associated with some limitations. In the last decade, in order to improve their characteristics, numerous investigators have modified WTRs by different methods. This paper reviews the different methods applied to WTRs to enhance their characteristics. The effects of these modifications on their characteristics are explained. The applications of modified WTRs as a filtration/adsorption medium for treating textile/dye wastewater, groundwater containing different anionic and cationic pollutants, storm water runoff, and as a substrate in constructed wetlands are presented in detail. Future research needs are highlighted. The review clearly indicates the potential of different modification methods to improve the removal of a variety of pollutants by WTRs from water and wastewater.