The objective of this review is to evaluate the toxicological profiles and environmental sustainability of Ionic Liquids for chemical applications. Data from in vitro assays, Danio rerio embryo tests and computational models were herein analyzed. The development and properties of 'green' Ionic Liquids were also assessed. Safety evaluations indicate that Ionic Liquids exhibit various toxicological behaviors, challenging the assumption that they are categorically safe for environmental exposure. 'Green' Ionic Liquids show enhanced biodegradability and lower ecotoxicity but are not universally benign. Some Ionic Liquids present toxicological properties that conflict with being environmentally safe. It is, therefore, essential to conduct comprehensive assessments before deeming them environmentally safe. Lifecycle management strategies incorporating circular economy principles are promising but require further validation and detailed analysis for sustainability confirmation.