The emergence of nanotechnology has been a transformative approach in the development of food packaging materials with functional abilities, offering innovative solutions to enhance food safety, preservation, and quality. The incorporation of nanocomposites and nanoparticles in food packaging has improved the mechanical strength, barrier properties, and antimicrobial activity of packaging materials, thereby maintaining shelf-life extension and quality of food during storage and transportation. However, the application of nanotechnology in food packaging is not without challenges. Concerns regarding the safety and potential migration of nanoparticles into food products pose significant regulatory and consumer acceptance issues. The need for comprehensive safety assessments and standardised regulations is critical to addressing these concerns and ensuring the safe use of nanotechnology in food applications. In this chapter, we discuss the properties and functionalities of packaging with nanoparticles for food. There is further discussion on the production of intelligent and active packaging systems for food using nanoparticles and nanocomposites. Several challenges are also highlighted that limit the implementation of these packaging materials. Key regulatory and safety issues, such as economic feasibility for nanotechnology-based packaging materials, together with consumer acceptance, toxicity and life cycle assessments, have been discussed. This chapter concludes by discussing the innovative approaches to the applications of nanotechnology in creating sustainable and effective packaging of food, making a compelling case for continued research and development.