Water, vital for life, faces contamination threats from both natural and human-induced sources, endangering aquatic life and our well-being. As global demands increase, waste generation rises, posing environmental risks while holding untapped potential in valuable biomolecules. This paper aims to examine the profound impact of water pollution on ecosystems and human health while exploring innovative strategies for effective wastewater treatment. Conventional treatment methods, while limited, set the stage for discussion on newer techniques like Metal-organic frameworks, Alkali-activated materials, Molecular biology, and phytoremediation. These pioneering approaches promise cost-effective, eco-friendly wastewater treatment, coupled with valuable compound extraction. Integrating these solutions fosters a circular bio-economy, optimizing resource use and curbing environmental impacts. This review thus explores a path toward sustainable water pollution mitigation and resource maximization in a rapidly evolving world.