Sustainable synthesis in nano domain refers to the development of nanomaterials through deployment of natural processes and principles to minimize the use of hazardous materials and reduce the generation of waste. This method aims to mitigate the environmental impact associated with traditional synthesis methods wherein natural processes, such as biomineralization and self-assembly, offer valuable insights into the nanocircular economy (NE) thus creating numerous benefits. Firstly, it reduces the environmental footprint of nanotechnology by minimizing energy consumption and waste generation. Secondly, it promotes the efficient use of resources by incorporating principles of recycling and reusability. By mimicking natural processes, various nanomaterials can be created, which are biocompatible, biodegradable, and less harmful to the environment. However, challenges such as scale-up, cost, regulatory frameworks, and material selection ought to be addressed to ensure their widespread adoption. The prospects for sustainable synthesis in the NE are promising, with potential advancements in advanced materials, and the integration of circular economy concepts into nanomedicine, and environmental appliances; its future lies in bioinspired synthesis, adherence to green chemistry principles, waste recycling and up-cycling, energy-efficient techniques, life cycle assessment (LCA), and multi-disciplinary collaborations. This review seeks to contribute to the existing knowledge and understanding of sustainable synthesis and its impact on shaping eco-friendlier and resource-efficient NE by describing the methodology involved and discuss the benefits, challenges, and future opportunities emphasizing the importance of sustainability and responsible practices in development of nanomaterials.