The emergence of mixed matrix membranes (MMMs) or nanocomposite membranes embedded with inorganic nanoparticles (NPs) has opened up a possibility for developing different polymeric membranes with improved physicochemical properties, mechanical properties and performance for resolving environmental and energy-effective water purification. This paper presents an overview of the effects of different hydrophilic nanomaterials, including mineral nanomaterials (e.g., silicon dioxide (SiO2) and zeolite), metals oxide (e.g., copper oxide (CuO), zirconium dioxide (ZrO2), zinc oxide (ZnO), antimony tin oxide (ATO), iron (III) oxide (Fe2O3) and tungsten oxide (WOX)), two-dimensional transition (e.g., MXene), metal–organic framework (MOFs), covalent organic frameworks (COFs) and carbon-based nanomaterials (such as carbon nanotubes and graphene oxide (GO)). The influence of these nanoparticles on the surface and structural changes in the membrane is thoroughly discussed, in addition to the performance efficiency and antifouling resistance of the developed membranes. Recently, GO has shown a considerable capacity in wastewater treatment. This is due to its nanometer-sized holes, ultrathin layer and light and sturdy nature. Therefore, we discuss the effect of the addition of hydrophilic GO in neat form or hyper with other nanoparticles on the properties of different polymeric membranes. A hybrid composite of various NPs has a distinctive style and high-quality products can be designed to allow membrane technology to grow and develop. Hybrid composite NPs could be used on a large scale in the future due to their superior mechanical qualities. A summary and future prospects are offered based on the current discoveries in the field of mixed matrix membranes. This review presents the current progress of mixed matrix membranes, the challenges that affect membrane performance and recent applications for wastewater treatment systems.