Presently, there is an emerging research trend in the fabrication of Phytogenic Magnetic Nanoparticles (PMNPs) and their applications in the water/wastewater treatment (WWT), due to their dynamic morphology, desired size, super paramagnetic behavior and high saturation magnetization value. Green fabrication of PMNPs is clean, non-toxic, eco-friendly, fast and cost-effective as compared to other physico-chemical technologies, which make it a promising technology. However, certain aspects such as the optimization of the fabrication protocol in order to produce desired quality of PMNPs, regeneration and reusability, are the main hindrances in the transfer of this technology from the laboratory scale to the commercial applications. Therefore, the present study highlights the performance of PMNPs for the removal of aqueous pollutants from wastewater. In addition, the research developments of PMNPs regarding fabrication mechanism, regeneration and reusability for WWT are discussed. The study also provides a model of PMNPs based on zero effluent discharge and consequently, the WWT process is proposed. Finally, future perspectives and challenges are discussed to make PMNPs based green nanotechnology technically more feasible and economically sustainable.