Petroleum, coal, and natural gas reservoir were depleting continuously due to an increase in industrialization, which enforced study to identify alternative sources. The next option is the renewable resources which are most important for energy purpose coupled with environmental problem reduction. Microbial fuel cells (MFCs) have become a promising approach to generate cleaner and more sustainable electrical energy. The involvement of various disciplines had been contributing to enhancing the performance of the MFCs. This review covers the performance of MFC along with different wastewater as a substrate in terms of treatment efficiencies as well as for energy generation. Apart from this, effect of various parameters and use of different nanomaterials for performance of MFC were also studied. From the current study, it proves that the use of microbial fuel cell along with the use of nanomaterials could be the waste and energy-related problem-solving approach. MFC could be better in performances based on optimized process parameters for handling any wastewater from industrial process.