A fresh interest has been accorded to metal iodides due to their fascinating physicochemical properties such as high ionic conductivity, variable optical properties, and high thermal stabilities in making micro and macro devices. Breakthroughs in cathodic preparation and metallization of metal iodides revealed new opportunities for using these compounds in various fields, especially in energy conversion and materials with luminescent and sensory properties. In energy storage metal iodides are being looked at due to their potential to enhance battery performance, in optoelectronics the property of the metal iodides is available to create efficient LEDs and solar cells. Further, their application in sensing devices, especially in environmental and medical monitoring has been quite mentioned due to their response towards environmental changes such as heat or light. Nevertheless, some challenges are still in question, including material stability, scale-up opportunities, and compatibility with other technologies. This work highlights the groundbreaking potential of metal iodide-based nanomaterials, emphasizing their transformative role in innovation and their promise for future advancements.