Rapid population growth and increased use of agricultural technology have exacerbated agrarian problems. While mechanization has improved agricultural production, the use of heavy machinery for planting, irrigation, and harvesting has resulted in soil compaction. Soil compaction reduces pore space and increases soil bulk density, which hinders plant growth. Globally, automated agriculture has reduced crop production by more than 50%. In developing countries, grazing animals in crop fields increases soil compaction. Soil compaction hinders root penetration, nutrient absorption, and water infiltration, increasing the risk of soil erosion and runoff. The study investigates novel ways to reduce soil compaction, namely the utilization of nanoparticles (NPs) and nanotechnology (NT). NPs have unique qualities that can improve the mechanical properties of soil, increase its strength, and minimize compaction. Some of the NPs such as Carbon nanotubes, nanolites, nanosilica, and nanoclay have been demonstrated to increase soil fertility, water retention, and structural stability. NPs can reduce environmental pollutants while improving soil quality. However, questions about their long-term biodegradability, ecological toxicity, and health effects require further investigation. The study also addressed how NPs affect the environment and human health. Their small size raises concerns about potential exposure and toxicity to individuals and ecosystems. The paper also briefly discusses the economic and regulatory considerations related to the production, use, and disposal of NPs, emphasizing the need for comprehensive legislation, environmental impact studies, and stakeholder involvement in decision-making. Although NPs offer promise for sustainable agriculture practices, more research is necessary to optimize their use and ensure long-term safety, as well as to gain a better understanding of their unique interactions with soil physics.