The green synthesis of AgNPs has emerged as a sustainable and efficient alternative to conventional chemical and physical methods, offering an eco-friendly approach with minimal hazardous byproducts. This review summarises the biological synthesis of AgNPs mediated by plants, fungi, bacteria and algae, which act as natural reducing, stabilising and capping agents. Key synthesis parameters such as pH, temperature, precursor concentration, reaction time and biomolecular composition are also examined. The review also discusses the diverse applications of green-synthesised AgNPs in the wastewater treatment sector. Their outstanding antimicrobial, catalytic and adsorptive activities enable effective treatment of wastewater contaminated with heavy metals, dyes, pharmaceuticals and pathogenic microorganisms. This review consolidates recent advances regarding synthesis routes, optimisation techniques, mechanistic insights and field applications, emphasising the promising role of green AgNPs as an emerging nanotechnology tool in efforts towards sustainable waste management. Further research directions are proposed to address the challenges of scalability, toxicity assessment, environmental fate and regulatory issues, with the goal of achieving safe and effective deployment.