This chapter is a thorough study of the self-healing composite materials engineered purposely for use in packaging applications. The frame of discussion is about the self-healing systems’ mechanisms involving intrinsic and extrinsic types of healing processes in impact of influence on healing efficiency. These include many composite systems like microencapsulation-based healing systems, vascular networks, reversible polymer nets, and stimuli-responsive systems. Material selection strategies, manufacturing techniques, and characterization methods are some of the characters, discussed in this chapter, for effective development of self-healing packaging solutions. Emphasis is placed on functional aspects like barrier properties, the antimicrobial capability, and temperature responsiveness associated with self-healing relevant to food preservation and cold chain applications. There is a handful of case studies that show examples of successful commercial realizations and in-service performance, as well as addressing extensive sustainability issues such as recyclability and compliance with regulatory requirements. The chapter concludes with a view of the current challenges such as scalability and cost-aspects, highlighting trends and emerging future directions in self-healing packaging technologies. Overall, this valuable source will go a long way to serve researchers, materials scientists, and packaging engineers who are increasingly studying the development of “next generation” packaging solutions which are more durable, will add life to shelf life, and are much less damaging to the environment.