Nanomaterials hold immense potential for numerous applications in energy, healthcare, and environmental sectors, which contribute to achieving sustainable development goals (SDGs) such as improved healthcare and cleaner environments. Their utilization spans from improving energy efficiency to enhancing medical diagnostics and mitigating environmental pollution, thus presenting a multifaceted approach to achieving sustainability goals. To ensure the sustainable and safe utilization of nanomaterials, a thorough evaluation of potential hazards and risks is required throughout their lifecycle - from resource extraction and production to use and disposal. In this review, we focus on understanding and addressing potential environmental and health risks associated with nanomaterial utilization. We advocate for a balanced approach to nanomaterial development and utilization, with early hazard identification, safe-by-design principles, and life cycle assessments, while emphasizing safe handling and disposal practices, collaborations, and continuous improvement. Our goal is to ensure responsible nanomaterial development for nanotechnology, fostering innovation alongside environmental and community well-being, through a holistic approach integrating science, ethics, and proactive risk assessment.