Colorectal cancer (CRC) represents a significant cancer type that leads to many worldwide deaths because its occurrence keeps rising in specific demographic groups. Three elements affect CRC development: genetic makeup, in addition to environmental variables and disturbances in the gut microbiome population. Research now demonstrates that dysbiosis, which is an irregularity in gut microbial populations, plays a fundamental role in stimulating colorectal cancer formation and its advancement. Three bacterial types, namely Fusobacterium nucleatum, Escherichia coli, and Bacteroides fragilis, act as carcinogenic agents in the body by generating chronic inflammation conditions, causing DNA damage and impairing immune defenses. The composition of gut microbiota experiencing modifications due to lifestyle elements like diet and obesity, together with smoking habits and alcohol consumption, ultimately impacts CRC development. Scientific discoveries in the field of microbiome research now enable better opportunities for the prevention and early detection of CRC. Scientists identify microbial biomarkers as potential tools for creating non-invasive testing methods that could fulfill upcoming screening needs. Scientists are currently examining microbiota-targeted treatments like probiotics alongside prebiotics and dietary interventions and also consider fecal microbiota transplantation (FMT) for both CRC prevention and management approaches. The specific treatments intend to rebuild correct gut bacterial levels while promoting beneficial microbial activity alongside lowering inflammatory pathways that contribute to tumor development. A detailed analysis of CRC-gut microbiota associations occurs in this review through investigations about carcinogenic bacterial species plus their pathways, along with environmental factor impacts. The review explores diagnostic methods and treatment possibilities based on microbiome research for managing CRC. Progress in gut microbiota allows potential development of personalized prevention and treatment methods, which hold promise to lower global colorectal cancer incidents.