In this review, the importance of electrical arc discharge technique in liquids in synthesis of various nanostructures from carbon based materials to metal and metal oxide nanostructures with their general and specific properties, especially the photocatalytic performance of metal oxide nanostructures is studied. The effect of arc current on size distribution, morphology and physicochemical properties of metal and semiconductor nanostructures was investigated by X-ray diffraction (XRD), transmission electron microscopy (TEM), dynamic light scattering (DLS), X-ray photoelectron spectroscopy (XPS) and UV–Vis spectroscopy. WO3 Cubic nanostructures with 30 nm mean particle size were formed during the discharge process in water. Discharge between zinc electrodes in water leads to formation of rod like and semi spherical ZnO nanostructures with 15–20 nm diameter range. ZrO2 nanoparticles were formed using zirconium electrodes in water. Photodegra-dation of Rhodamine B (Rh. B) shows that the as prepared nanostructures in this method have potential ability for environmental purifications. Also, using silver electrodes in water leads to formation of silver nanoparticles with 8–15 nm average particle size. Moreover, a novel method for synthesis of gold nanoparticles without using gold electrodes is presented. Finally, the future outlook of this technique in synthesis of various nanocrystalline materials is presented.