Neonicotinoid insecticides were initially hailed as safer alternatives to organochlorine and organophosphate pesticides due to their perceived lower toxicity to non-target organisms. However, it has been recently discovered that sublethal exposure to neonicotinoids negatively affects beneficial arthropods that are essential for a functional ecosystem. These beneficial arthropods include pollinators, biological control agents, and decomposers. This review synthesizes current research on the physiological, behavioral, and reproductive consequences of neonicotinoids on non-target arthropods and their broader ecological impact. The chemical and physical properties of neonicotinoids raise concerns about long-term ecological consequences of neonicotinoid use because these chemicals are persistent in plants and soil, which contributes to prolonged exposure risks for organisms. Sublethal doses of neonicotinoids can disrupt the ecological services provided by these organisms by impairing essential biological processes including motor function, odor detection, development, and reproduction in insects, while also altering behavior such as foraging, mating, and nesting. Furthermore, neonicotinoid exposure can alter community structure, disrupting trophic interactions and food web stability. Recognizing the sublethal impacts of neonicotinoids is critical for the development of more sustainable pest management strategies. It is imperative that future research investigates the underlying mechanisms of sublethal toxicity and identifies safer, more effective approaches to neonicotinoid-based pest control to mitigate adverse ecological effects. Incorporating this knowledge into future environmental risk assessments will be essential for protecting biodiversity and maintaining ecosystem functionality.