This review examines Daphnia as a model organism for assessing nanomaterial and microplastic toxicity, highlighting its advantages including filter-feeding, transparent body, and parthenogenetic reproduction. The paper synthesizes evidence on nanomaterial transformations in the environment, enzyme biomarkers, multigenerational effects, and emerging technologies like microfluidics and adverse outcome pathways. Key findings indicate that standard OECD tests may underestimate toxicity by not accounting for environmental transformations, multigenerational effects, or particle-specific uptake mechanisms.