Composting is a biologically regulated process in which diverse microbial communities transform organic waste into stable, humus-rich, nutrient-enriched manure. It plays a crucial role in sustainable waste management, soil fertility improvement, and circular agricultural systems. Recent developments in nanotechnology have introduced innovative tools to improve compost microbiology and process efficiency. Nanomaterials such as metal oxide nanoparticles, nano-biochar, nanoclays, nanofertilizers, carbon nanomaterials, and nanosensors are increasingly explored for enhancing microbial activity, accelerating organic matter degradation, retaining nutrients, immobilizing pollutants, and enabling smart monitoring systems. Nanomaterials can interact with microorganisms at cellular, molecular, and biochemical levels, thereby influencing enzymatic activity, microbial growth, metabolic efficiency, and pollutant degradation. Furthermore, nanosensors and nano-enabled fertilizers are facilitating precision composting through real-time monitoring and controlled nutrient delivery. The integration of nanotechnology with compost microbiology offers significant potential to improve compost quality, reduce environmental losses, and support climate-smart agriculture. This article reviews the major applications, benefits, challenges, and future prospects of nano-enabled composting systems. Despite its promising potential, comprehensive assessment of environmental safety, nanoparticle toxicity, and long-term ecological impacts remains essential for responsible and sustainable implementation.