The development of an ideal membrane for membrane distillation (MD) is of the utmost importance. Enhancing the efficiency of MD by adding nanoparticles to or onto a membrane's surface has drawn considerable attention from the scientific community. It is crucial to thoroughly examine state-of-the-art nanomaterials-enabled MD membranes with desirable properties, as they greatly enhance the efficiency and reliability of the MD process. This, in turn, opens up opportunities for achieving a sustainable water-energy-environment nexus. By introducing carbon-based nanomaterials into the membrane's structure, the membrane gains excellent separation abilities, resistance to various feed waters, and a longer lifespan. Additionally, the use of carbon-based nanomaterials in MD has led to improved membrane performance characteristics such as increased permeability and a reduced fouling propensity. These nanomaterials have also enabled novel membrane capabilities like in situ foulant degradation and localized heat generation. Therefore, this review offers an overview of how the utilization of different carbon-based nanomaterials in membrane synthesis impacts the membrane characteristics, particularly the liquid entry pressure (LEP), hydrophobicity, porosity, and membrane permeability, as well as reduced fouling, thereby advancing the MD technology for water treatment processes. Furthermore, this review also discusses the development, challenges, and research opportunities that arise from these findings.