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Abstract Over the past decade, lead halide perovskite (LHP) nanocrystals (NCs) have attracted significant attention due to their tunable optoelectronic properties for next‐generation printed photonic and electronic devices. High‐energy photons in the presence of haloalkanes provide a scalable and sustainable pathway for precise bandgap engineering of LHP NCs via photo‐induced anion exchange reaction (PIAER) facilitated by in situ generated halide anions. However, the mechanisms driving photo‐induced bandgap engineering in LHP NCs remain not fully understood. This study elucidates the underlying PIAER mechanisms of LHP NCs through an advanced microfluidic platform. Additionally, the first instance of a PIAER, transforming CsPbBr₃NCs into high‐performing CsPbI₃NCs, with the assistance of a thiol‐based additive is reported. Utilizing an intensified photo‐flow microreactor accelerates the anion exchange rate 3.5‐fold, reducing material consumption 100‐fold compared to conventional batch processes. It is demonstrated that CsPbBr₃NCs act as photocatalysts, driving oxidative bond cleavage in dichloromethane and promoting the photodissociation of 1‐iodopropane using high‐energy photons. Furthermore, it is demonstrated that a thiol‐based additive plays a dual role: surface passivation, which enhances the photoluminescence quantum yield, and facilitates the PIAER. These findings pave the way for the tailored design of perovskite‐based optoelectronic materials.