Indiscriminate use of excessive insecticides has mounted concerns over human health and environmental pollution issues. In contrast, nanoencapsulations of many insecticides can offer a broad range of reliable and mostly safe alternatives based on their nanoparticles (NPs). These NPs possess virtually all the attributes of ideal biocontrol agents due to their minute size which economizes usage to wide surface areas and boosts reactivity to increase effectiveness. Many of their formulations presented herein have proved to render both huge biocompatibility and supreme efficiency as insecticides. This review aimed to gather information relevant to expanding and advancing technological tools for optimizing application of insecticidal essential oils and microbial toxins with the targeted release and protective merits of encapsulation. It highlights their various applications to demonstrate their merits compared to other classical and commercial usages. The target pests included a variety of exemplifying insects of stored grains, farming, and disease-vectors. Yet, limited recorded data on their possible unfavorable impacts on humans and the environment might call for their attentive usage particularly in large-scale settings. Hence, the related modes of action of essential oils and microbial toxins are provided so that they could be used effectively and carefully. Their insecticidal merits lend further urgency to the need to optimize their role in pest management as related to challenges and opportunities which are discussed here to upgrade sustainable agricultural systems.