Microbial-induced carbonate precipitation (MICP) is a promising bioremediation technology for heavy metal immobilisation. This review explores the applications and efficacy of MICP in environmental challenges. It provides a comprehensive overview of the mechanism, primarily through ureolysis, detailing the process from urea hydrolysis to heavy metal precipitation as carbonate minerals. Alternative pathways like photosynthesis and nitrate reduction are also discussed, highlighting the broad applicability of MICP. The review covers the historical evolution and advancements of MICP as a sustainable solution for heavy metal contamination. Recent studies demonstrate the efficiency of MICP in achieving high removal rates in diverse environments. The sustainable operation, precise targeting of heavy metal species, and versatility of MICP are examined. Challenges such as high copper concentrations, acidic conditions, and cost considerations are addressed. The article provides future directions and solutions to these challenges, including leveraging machine learning for optimal performance and enhancing cost considerations through detailed analyses. This review improves understanding of MICP’s potential, provides a valuable resource for researchers in environmental engineering and the built environment, and encourages innovative approaches within these fields.