In this review, the authors focused on the applicability of nano-biotechnology in fertilizer development to improve the nutrition dynamics of the soil–plant system for sustainable crop management. Indiscriminate uses of chemical fertilizers have caused serious degradation of soil fertility, environmental pollution, pest resistivity, loss of biodiversity and economic losses. Hence, researchers and scientists have shifted their attention to a safer and productive means of fertilization for agricultural practices. Nano-biotechnology, with the potential properties of nanomaterial and biofertilizer, helps for the development of novel, low-cost, eco-friendly nano-biofertilizer. The literature on the role of nano-biofertilizer in plant and soil systems demonstrated that it acts efficiently for enhancement of agricultural productivity. They act synergistically providing higher retention of soil moisture and essential plant nutrients due to nanomaterial coating as well as microbial revitalization due to the bioorganic component containing plant growth promoters through direct and indirect interactions like biofertilization, rhizoremediation, disease resistance, etc. A review on nanotechnology-based biofertilizer formulation for sustainable agriculture development is discussed in this paper. The authors focus on the literature-based evidences and outstanding concerns of nano-biotechnological researches on the role of nanoformulated organic manures with key nutrients on crop growth and management. Literature-based evidences showed the profound role of nano-biofertilizer in benefitting crop growth and soil quality. The present review summarized various soil- or field-based studies with nano-biofertilizers and its significance over biofertilizer. It is anticipated that the development and validation of nano-biofertilizer that are non-disruptive to existing bulk nanofertilizer production systems will motivate the industry’s involvement in nano-biofertilizer. © 2019, The National Academy of Sciences, India.