Abstract Hydropower is a crucial source of renewable energy in the ever-changing world, contributing significantly to global electricity generation. As the world focuses more on sustainability, the manufacturing processes within the hydropower industry have undergone considerable transformations to align with eco-friendly practices. This review explores the landscape of sustainable manufacturing practices implemented in the hydropower sector, examining the various strategies, technologies, and initiatives adopted to minimize environmental impact while enhancing efficiency of the project. The review encompasses the significance of sustainable materials and manufacturing techniques within the context of hydropower, highlighting the industry’s commitment to reducing its carbon footprint. It consists of the utilization of advanced materials and technologies aimed at optimizing the manufacturing processes, enhancing the durability and efficiency of hydropower components, and reducing resource consumption. Also, the review highlights the adoption of life cycle assessment (LCA) methodologies in the development and manufacturing phases of hydropower components. These practices facilitate the evaluation of environmental impacts across the entire life cycle of hydropower projects. Furthermore, the review discusses about the implementation of innovative approaches such as Additive manufacturing and CNC machining process as well as casting methods, streamlining production while minimizing waste generation and energy consumption. It also includes the case study of best practices that are prevalent in the context of sustainable manufacturing Additionally, the review examines the role of regulatory frameworks, standards, and certifications in driving sustainable manufacturing practices within the hydropower industry scenario in the world. It also outlines potential future directions to further enhance sustainability in hydropower manufacturing.