The rising environmental issues linked with conventional petroleum-based plastic packaging have fueled global interest in sustainable alternatives. This chapter explores the valorization of agricultural crop residues such as rice straw, wheat straw, sugarcane bagasse, corn husk, and barley husk as the biodegradable and eco-compliant food packaging substitutes. These lignocellulosic by-products are the most common agricultural waste in the agricultural landscape, and their cellulose, hemicellulose, and lignin contents make them good feedstock for the development of biocomposites. Techniques in the processing of biomass such as chemical treatment and nanocellulose extraction have made the development of such packaging material with good mechanical, barrier, and antimicrobial properties possible. Experimental data confirm that films and molded articles made from these residues are functional in food packaging applications with added value of being biodegradable as well as compostable. However, technological constraints such as sensitivity to moisture, thermal sensitivity, and variability in feedstock properties make commercial scalability challenging. In addition, standard processing, safety testing, and long-term stability testing are needed to ensure regulatory compliance. From the point of sustainability, the conversion of agro-waste to value-added packaging conforms to the priority of major UN Sustainable Development Goals and supports the development of circular economy by reducing the plastic load of waste and supporting rural bioeconomies. The chapter gives an overview of the availability of biomass in India, compositional readiness of different residues, recent advancements in fabrication of biocomposites, as well as the current limitations. It concludes that despite the current constraints, lignocellulosic crop residues are largely potential alternatives to plastic packaging on condition that research and supporting policy layers enable their industrial uptake.