Nuclear energy accounts for ≈10% of global energy production, positioning it as a promising solution for achieving carbon neutrality amid escalating concerns over climate change. Nonetheless, the effective management of radioactive waste, which can remain hazardous for up to one hundred thousand years, presents considerable challenges that must be addressed to uphold public trust and safeguard environmental safety. This review outlines the fundamental stages of nuclear decommissioning including strategic planning, decontamination, dismantling, remediation, encapsulation, deregulation, and site reuse as a critical component of sustainable environmental practices. The review also highlights the significance of efficient decontamination processes in reducing waste generation. Various decontamination techniques, including mechanical, electromechanical, chemical, and advanced methods such as laser and plasma decontamination, are evaluated for their effectiveness and limitations. Moreover, the review emphasizes the need to enhance the recovery and recycling of ion exchange resin and potential radionuclides during decontamination processes to minimize waste and to address the depletion of potential radionuclide resources. Future research should prioritize the development of innovative techniques for decontamination and radioactive waste management, fostering sustainable decommissioning and supporting the ongoing development of nuclear energy in an environmentally responsible manner.