The recent expeditious industrialization and urbanization showcase the increasing need for renewable and non-renewable energy and the severe environmental crisis. In this regard, numerous 2-dimensional (2D) nanomaterials have been developed as a facile approach to meet the futuristic energy essentials and to resolve the crisis. In contrast, the newly explored 2D MXenes (transition metal carbide/nitrides/carbonitride) have been employed as an intriguing material for various environmental applications. This development is accredited to their unique properties, which include a vast surface area, strong electrical conductivity, fascinating photophysical properties, high mechanical properties, stability in an aqueous medium, high hydrophilicity, biocompatibility, ease of functionalization, and excellent thermal properties. MXenes act as a potential candidate in water desalination, energy storage devices such as electrodes of Li-ion batteries and pseudo capacitors, hydrogen production, sensors, and wastewater treatment. This review article deliberates the synthesis of MXene and nanocomposites of MXene and their photo-catalytic actions against various toxic pollutants such as organic dyes and heavy metals in wastewater. This review also precises the various preparation methods of MXene-based photocatalyst and the enhanced photocatalytic activity of MXene and MXene-based nanocomposites in wastewater treatment. Also, it details the attempts made to improve the photocatalytic activity of MXene-based nanocomposites in terms of their structural compositions. In addition, the merits and demerits of the MXene-based photocatalysts are deliberated, which may pave the way for future research in this arena.