Owing to its strong reducing ability, high reaction activity, excellent adsorption properties, good mobility and relatively low cost, nano zerovalent iron (nZVI) is an extremely promising nanomaterial for use in water treatment. In this paper, the working mechanisms of nZVI in the degradation of various contaminants in water are outlined and discussed. Synthesis methods and their respective advantages and disadvantages are discussed in detail. Furthermore, a variety of modification methods which have been developed to improve the mobility and stability of nZVI as well as to facilitate the separation of nZVI from degraded systems are also summarized and discussed. Numerous studies indicate that nZVI has considerable potential to become an efficient, versatile and practical approach for large-scale water treatment.