Due to rapid industrialization, urbanization, and surge in modern human activities, water contamination is a major threat to humanity globally. Contaminants ranging from organic compounds, dyes, to inorganic heavy metals have been of major concern in recent years. This necessitates the development of affordable water remediation technologies to improve water quality. There is a growing interest in nanotechnology recently because of its application in eco-friendly, cost-effective, and durable material production. This study presents a review of recent nanocomposite technologies based on clay, applied in the removal of heavy metals from wastewater, and highlights the shortcomings of existing methods. Recently published reports, articles, and papers on clay-based nanocomposites for the removal of heavy metals have been reviewed. Currently, the most common methods utilized in the removal of heavy metals are reverse osmosis, electrodialysis, ion exchange, and activated carbon. These methods, however, suffer major shortcomings such as inefficiency when trace amounts of contaminant are involved, uneconomical costs of operation and maintenance, and production of contaminated sludge. The abundance of clay on the Earth’s surface and the ease of modification to improve adsorption capabilities have made it a viable candidate for the synthesis of nanocomposites. Organoclay nanocomposites such as polyacrylamide-bentonite, polyaniline-montmorillonite, and β-cyclodextrin-bentonite have been synthesized for the selective removal of various heavy metals such as Cu2+, Co2+, among others. Bacterial clay nanocomposites such as E. coli kaolinite nanocomposites have also been successfully synthesized and applied in the removal of heavy metals. Low-cost nanocomposites of clay using biopolymers like chitosan and cellulose are especially in demand due to the cumulative abundance of these materials in the environment. A comparative analysis of different synthetic processes to efficiently remove heavy metal contaminants with clay-based nanocomposite adsorbents is made.