Cold plasma has been a potent energy-efficient and eco-friendly advanced oxidation technology which has gained attention in recent decades as a non-thermal approach in diverse forms of applications. This review highlights a comprehensive account of the implementation of this technology in the field of wastewater treatment to resolve certain issues regarding the degradation of numerous aqueous pollutants and water-borne pathogenic microorganisms including viruses up to a significant level. The paper addresses plasma chemistry sources and mechanisms on wastewater treatment and impact on various physical, chemical, and biological characteristics of treated water. Furthermore, studies have revealed that this emerging technology is effective in inactivating SARS-CoV-2 or coronavirus, which serves as a transmission channel for this lethal virus in wastewater. Despite these benefits, the development of cold plasma as a wastewater treatment technique is still hampered by a lack of information like capital investment, proficient application, liveability, and operating cost, thus necessitating additional research for its booming commercialization, as this can be an emerging approach to solving water crises and meeting the demand for fresh or potable water resources. © 2021, The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.