The use of pharmaceuticals, dyes, and pesticides in modern healthcare and agriculture, along with expanding industrialization, heavily contaminates aquatic environments. This leads to severe carcinogenic implications and critical health issues in living organisms. The photocatalytic methods provide an eco-friendly solution to mitigate the energy crisis and environmental pollution. Sunlight-driven photocatalytic wastewater treatment contributes to hydrogen production and valuable product generation. The removal of contaminants from wastewater through photocatalysis is a highly efficient method for enhancing the ecosystem and plays a crucial role in the dual-functional photocatalysis process. In this review, a wide range of catalysts are discussed, including heterojunction photocatalysts and various hybrid semiconductor photocatalysts like metal oxides, semiconductor adsorbents, and dual semiconductor photocatalysts, which are crucial in this dual function of degradation and green fuel production. The effects of micropollutants in the ecosystem, degradation efficacy of multi-component photocatalysts such as single-component, two-component, three-component, and four-component photocatalysts were discussed. Dual-functional photocatalysis stands out as an energy-efficient and cost-effective method. We have explored the challenges and difficulties associated with dual-functional photocatalysts. Multicomponent photocatalysts demonstrate superior efficiency in degrading pollutants and producing hydrogen compared to their single-component counterparts. Dual-functional photocatalysts, incorporating TiO₂, g-C₃N₄, CeO₂, metal organic frameworks (MOFs), layered double hydroxides (LDHs), and carbon quantum dots (CQDs)-based composites, exhibit remarkable performance. The future of synergistic photocatalysis envisions large-scale production facilitate integrating advanced 2D and 3D semiconductor photocatalysts, presenting a promising avenue for sustainable and efficient pollutant degradation and hydrogen production from environmental remediation technologies.