Nanobiotechnology is the combination of nanotechnology and biotechnology. Bioremediation is defined as a waste management technique that involves use of organisms to remove or neutralize pollutants from a contaminated site. This involves no use of chemicals and it allows waste to get recycled; this process has evolved as one of the most important methods. Remediation of contaminants using existing conventional technology is neither effective nor efficient in environmental cleanup. Techniques developed from nanobiotechnology can detect, control and remediate pollutants by acting as sensors. Use of nanomaterials has less toxic effects and this will not only reduce consumption time but also reduce cost. Nanoparticles developed by using microbial systems provide green nanotechnology and help in keeping the environment clean. Green nanotechnology needs to develop to make cleaner environment with great ecological balance on earth. This chapter deals with traditional methods of bioremediation, methods in nanobiotechnology and future aspects.