Recent advancements in space technology and reduced launching cost led companies, defence and government organisations to turn their attention to low Earth orbit (LEO) and very low Earth orbit (VLEO) satellites, for they offer significant advantages over other types of spacecraft and present an attractive solution for observation, communication and other tasks. However, keeping satellites in LEO and VLEO presents a unique set of challenges, in addition to those typically associated with exposure to space environment such as damage from space debris, thermal fluctuations, radiation and thermal management in vacuum. The structural and functional elements of LEO and especially VLEO satellites are significantly affected by residual atmosphere and, in particular, atomic oxygen (AO). At VLEO, the remaining atmosphere is dense enough to create significant drag and quicky de-orbit satellites; thus, thrusters are needed to keep them on a stable orbit. Atomic oxygen-induced material erosion is another key challenge to overcome during the design phase of LEO and VLEO spacecraft. This review covered the corrosion interactions between the satellites and the low orbit environment, and how it can be minimised through the use of carbon-based nanomaterials and their composites. The review also discussed key mechanisms and challenges underpinning material design and fabrication, and it outlined the current research in this area.