Plastic materials such as polyethylene, polyvinyl chloride, and polystyrene dominate the packaging sector because of their durability, stability, and ease of processing. However, these petroleum-based plastics are nonbiodegradable and persist in the environment for decades, causing serious ecological pollution. Growing global concern over plastic waste has intensified the search for sustainable packaging alternatives, leading to increased interest in algal-based bioplastics. Algae offer a renewable and versatile biomass source capable of producing biopolymers with minimal environmental impact. This chapter discusses the development and application of algal-derived biopolymers, including carrageenan, alginate, fucoidans, and chitosan, for food packaging applications. Biodegradable polymers are broadly categorized into agropolymers derived from biomass, biopolyesters synthesized by microorganisms, and polymers produced from naturally occurring monomers. These materials exhibit excellent film-forming ability, mechanical strength, and barrier properties required for effective food packaging. The incorporation of natural additives and algal-derived bioactive compounds enhances antimicrobial and antioxidant functions, improving food safety and shelf life. Advances in processing technologies and challenges related to large-scale production are also highlighted, emphasizing the potential of algal-based bioplastics in sustainable packaging systems.