Nanomaterials and nanomanufacturing is one of the fast growing and interesting fields in recent research and industries, and gaining huge interest around the world. As the nanomaterials has a higher physical and mechanical properties compared to their metal counterparts, it is expected that significant amount (15–20%) of nanomaterials will be put into use in less than five years periods almost in all fields of manufacturing. As the nanomaterial manufacturing is new, it is essential to establish an optimal method so as to reduce wastages and to increase the ratio of output to input materials used. It’s important to use the minimal energy, water and other raw materials. Thus, this review will more concentrate on the sustainability of inputs, need to improve or optimize the production methods or sustainable manufacturing and green gas production and its global effects. Suitability of both top-down and bottom-up processing for nanoparticles will be addressed. Need of life cycle analysis to understand feasibility of recyclable at the end of the life with least possible wastage and reduced energy. Current research on environmental benefits and risk of potential toxicity and health effects of nanoproducts will be discussed.