This review provides a comprehensive overview about nonextractable residue (NER) formation and attempts to classify the various types. Xenobiotic NER derived from parent pesticides (or other environmental contaminants) and primary metabolites sorbed or entrapped within the soil organic matter (Type I) or covalently bound (Type II) pose a considerably higher risk than those derived from productive biodegradation. However, biogenic nonextractable residues (bioNER) (Type III) resulting from conversion of carbon (or nitrogen) from the compounds into microbial biomass molecules do not pose any risk. Experimental approaches to clearly distinguish between the types are provided, and a model to prospectively estimate bioNER formation in soil is proposed.