The ever-increasing plastic pollution in soil and water resources raises concerns about its effects on terrestrial plants and agroecosystems. Although there are many reports about the contamination with nanoplastics on plants, the presence of magneto-assisted nanomaterials enabling the removal of their adverse impacts still remains unclear. Therefore, the purpose of the current study is to evaluate the potential of nanomaterial Fe2O3-modified graphene oxide (FGO, 50–250 mg L−1) to eliminate the adverse effects of nanoplastics in plants. Wheat plants exposed to polystyrene nanoplastics concentrations (PS, 10, 50 and 100 mg L−1) showed decreased growth, water content and loss of photosynthetic efficiency. PS toxicity negatively altered gas exchange, antenna structure and electron transport in photosystems. Although the antioxidant system was partially activated (only superoxide dismutase (SOD), NADPH oxidase (NOX) and glutathione reductase (GR)) in plants treated with PS, it failed to prevent PS-triggered oxidative damage, as showing lipid peroxidation and hydrogen peroxide (H2O2) levels. FGOs eliminated the adverse impacts of PS pollution on growth, water status, gas exchange and oxidative stress markers. In addition, FGOs preserve the biochemical reactions of photosynthesis by actively increasing chlorophyll fluorescence parameters in the stressed-wheat leaves. The activities of all enzymatic antioxidants increased, and the H2O2 and TBARS contents decreased. GSH-mediated detoxifying antioxidants such as glutathione S-transferase (GST) and glutathione peroxidase (GPX) were stimulated by FGOs against PS pollution. FGOs also triggered the enzymes and non-enzymes related to the Asada-Halliwell cycle and protected the regeneration of ascorbate (AsA) and glutathione (GSH). Our findings indicated that FGO had the potential to mitigate nanoplastic-induced damage in wheat by regulating water relations, protecting photosynthesis reactions and providing efficient ROS scavenging with high antioxidant capacity. This is the first report on removing PS-induced damage by FGO applications in wheat leaves.