The application of nanotechnology in food packaging has become one of the most vital innovations, as it provides features such as longer shelf-life, safety, and quality parameters. This paper discusses and compares various categories of nanomaterials, such as metal-containing nanomaterials, carbon-containing nanomaterials, and polymer-containing nanomaterials, which offer antimicrobial, barrier, and functional uses in food preservation. However, it is essential to note that the application of nanomaterials has disadvantages, such as toxicity to humans and the environment, despite the benefits offered, such as food preservation and safety. Possible concerns include nanoparticle transfer to food chains, chronic toxicity, biodegradation, and the ability to recycle have also been addressed. Other considered issues include regulatory and ethical issues, such as labeling, customer awareness and status, and variations in global regulatory systems. This study recommends using environmentally friendly nanomaterials to minimize adverse effects on the environment and life cycle assessment (LCA) to measure sustainability. Examples of sustainable innovation focus on case studies in which an industry attempts to develop new technologies while preserving the interests of consumers and the environment. The following suggestions for future research are relevant and appropriate: ethics as a research component, regulation enhancement, and consumer awareness for using nanotechnology in food packaging.