The release of dye-contaminated wastewater from industries such as textiles, cosmetics, and paper poses significant environmental and health hazards. This review highlights the potential of biomass-derived carbonaceous materials (BCMs) as sustainable adsorbents and photocatalysts for dye remediation. Synthesized through pyrolysis, hydrothermal carbonization, or chemical activation, BCMs exhibit high surface area, tunable porosity, and diverse surface functionalities, enabling effective dye adsorption and catalytic degradation. The influence of physicochemical factors such as pH, temperature, and dye concentration on removal efficiency is discussed in this review. We further explore the synergy between BCMs and nanostructures in enhancing photocatalytic performance. Integrating advanced synthesis techniques and functionalization strategies further improves the performance of BCMs in wastewater treatment. While recent advancements underscore their potential, challenges related to regeneration, scalability, and economic feasibility remain. This work provides an integrated perspective on the development and application of BCMs, emphasizing their role in advancing eco-friendly and cost-effective water treatment solutions.