An innovative approach toward reducing environmental concerns brought on by conventional packaging materials is the adoption of green packaging. In this context, green packaging has been thoroughly covered by exploring the eco-friendly and biodegradable composite materials through their properties, applications, and their potential for transforming the world of packaging. The discourse starts by reviewing the impact of traditional packaging on the environment, where we point out some of its problems, including generation of plastic wastes depletion of resources and their losses. We go on to describe biodegradable bioplastic materials such as polyhydroxyalkanoates (PHA), polylactic acid (PLA), and starch-based polymers, their properties, manufacturing processes, and uses in the food packaging’s, agricultural products and consumer products. In the same vein, green and sustainable composite materials such as natural fiber composites and bio-based resins are examined for their potential in lowering the carbon footprint of packaging. Smart and active packaging materials are introduced as the latest breakthroughs propelling sustainability. The discussion, also presents a broader picture on the opportunities and limitations of embracing green packaging and sustainable supply chains including the significance of incorporating these materials in the circular economy. Merging the theoretical understanding, relevant examples, and future potentialities, this chapter presents a well-rounded depiction of green packaging as an essential aspect of worldwide sustainability strategies.