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Nanomaterials have gained significant attention as a remarkable class of materials due to their unique properties and the fact that they encompass a wide range of samples with at least one dimension ranging from 1 to 100 nm. The deliberate design of nanoparticles enables the achievement of extremely large surface areas. In the field of cost-effective electrochemical devices for energy storage and conversion applications, nanomaterials have emerged as a key area of research. Their exceptional physical and chemical properties have led to extensive investigations aimed at improving the performance and cost-effectiveness of electrochemical devices, including batteries, supercapacitors, and fuel cells. The continuous development and enhancement of these high-performance materials are driven by the demand for enhanced productivity, connectivity, and sustainability at a reduced cost. This review focuses on the electrochemical performance of electrodes, energy storage, and electrochemical sensors (ES) based on nanotechnology. It discusses the application of nanotechnology in electrochemistry for water purification and the fate of substances in water, while also introducing green nanotechnology and cost-effective, high-fidelity product creation through electrochemical methods. The study emphasizes the synthesis of novel nanomaterials, such as metal–organic frameworks (MOFs), covalent organic frameworks (COFs), and MXenes, with applications in electrochemical devices. Furthermore, it explores the integration of nanostructures with electrochemical systems in economically significant and future applications, along with the challenges faced by nanotechnology-based industries. The paper also explores the interplay between nanomaterials and biosensors, which play a vital role in electrochemical devices. Overall, this review provides a comprehensive overview of the significance of nanomaterials in the development of cost-effective electrochemical devices for energy storage and conversion. It highlights the need for further research in this rapidly evolving field and serves as a valuable resource for researchers and engineers interested in the latest advancements in nanomaterials for electrochemical devices.