The food industry and researchers are exploring biodegradable, renewable materials from natural sources to address the adverse environmental effects of synthetic packaging. The environmental impact of plastic waste is enormous, and the pressure to switch from conventionally polluting petrochemical polymers to sustainable ones is on the rise. The demand for innovative and healthier products has risen as a result of worldwide progress and growing knowledge of the health effects of food. Many natural polysaccharides possess valuable properties such as enhancing flavor, texture, shelf life, storage stability, water retention, and improving oil absorption in fried foods, making them highly suitable for food packaging. Among these, alginate stands out as a key polysaccharide. Alginate-derived food packaging materials have immense potential in the food industry due to their natural biodegradability, compatibility with the ecosystem, and capacity to prolong the shelf life of a variety of food products. Moreover, the alginates can have enhanced functionalities through various techniques. However, further study and advancement are required to improve their features and boost production for widespread use. The present chapter focuses on the alginate sources, extraction techniques, and alginate properties relevant to food packaging.