Over the past decade use of aerogels has received much attention as an emerging technology for wastewater treatment. However, production of aerogels is not environment-friendly. Owing to its excellent properties such as porosity, three-dimensional structure, being amenable to chemical modifications, it is imperative to devise strategies for their improved production and use. Bioaerogels are non-toxic and most of their precursor compounds are biomass-derived. This review aims to present a comprehensive report on survey of existing literature published on the use of bioaerogels for removal of all major categories of water contaminants, namely, heavy metals, industrial dyes, oil, organic compounds and pharmaceuticals. It also gives critical analysis of the lacunae in the existing knowledge such as lack of studies on domestic sewage, emerging pollutants, toxicity of raw materials and adequate disposal of used adsorbents. Proposals of overcoming the limitations in the applicability of bioaerogels, like combining constructed wetlands with use of bioaerogels, among others have been discussed. In this review, emphasis has been given on production of bioaerogels, with an aim to underscore the potential of valorization of biomass waste to develop novel materials for wastewater treatment in an effort towards creating a circular and green economy.