Global water scarcity is threatening the lives of humans, and it is exacerbated by the contamination of water, which occurs because of increased industrialization and soaring population density. The available conventional physical and chemical water treatment techniques are hazardous to living organisms and are not environmentally friendly, as toxic chemical elements are used during these processes. Nanotechnology has presented a possible way in which to solve these issues by using unique materials with desirable properties. Zinc oxide nanoparticles (ZnO NPs) can be used effectively and efficiently for water treatment, along with other nanotechnologies. Owing to rising concerns regarding the environmental unfriendliness and toxicity of nanomaterials, ZnO NPs have recently been synthesized through biologically available and replenishable sources using a green chemistry or green synthesis protocol. The green-synthesized ZnO NPs are less toxic, more eco-friendly, and more biocompatible than other chemically and physically synthesized materials. In this article, the biogenic synthesis and characterization techniques of ZnO NPs using plants, bacteria, fungi, algae, and biological derivatives are reviewed and discussed. The applications of the biologically prepared ZnO NPs, when used for water treatment, are outlined. Additionally, their mechanisms of action, such as the photocatalytic degradation of dyes, the production of reactive oxygen species (ROS), the generation of compounds such as hydrogen peroxide and superoxide, Zn²⁺ release to degrade microbes, as well as their adsorbent properties with regard to heavy metals and other contaminants in water bodies, are explained. Furthermore, challenges facing the green synthesis of these nanomaterials are outlined. Future research should focus on how nanomaterials should reach the commercialization stage, and suggestions as to how this ought to be achieved are presented.