Nanoparticles (NPs), which possess unique physicochemical qualities such as large surface area and reactivity, have brought about a revolution in a variety of sectors, including medicine and electronics. The growing ubiquity of these substances, on the other hand, has given rise to worries over the toxicological effects they have on human health and ecosystems. The condition known as oxidative stress, which is caused by an imbalance between the formation of reactive oxygen species (ROS) and antioxidant defenses, is one of the key processes that contribute to the toxicity of NPs. An excessive amount of ROS may cause damage to cellular components such as lipids, proteins, and DNA, which can result in detrimental consequences such as inflammation, apoptosis, and the development of cancer. NP-induced oxidative stress is investigated in this work, which focuses on the molecular mechanisms that are responsible for it. These processes include mitochondrial dysfunction, catalytic redox cycling, and the release of metal ions from particle disintegration. In addition, we investigate how the features of NPs, such as their size, shape, surface charge, and composition, affect their capacity to produce ROS. Additionally, the consequences of oxidative stress for both acute and chronic health effects are examined, in addition to the role that it plays in the toxicity of the environment. The use of antioxidants and alterations to the surface of NPs are two examples of mitigation measures that are discussed in this article. The findings of this study highlight the significance of gaining knowledge of the processes behind oxidative stress to ensure the safe design and deployment of nanoparticles.