Vegetables are a widely consumed and highly perishable commodity, making effective packaging materials is essential to lengthen shelf life while maintaining quality and safety. Presently, consumers have increased their demand for hygienic, fresh, superior, less treated, and ready-made food with increased shelf life and demand the improvement of novel food packaging technology. The present work explores methods to reduce the usage of traditional polymers and to increase biopolymer composites and recycling efficiency. There is a substantial attention in the field of nanocomposites for food packaging applications from the past two decades. The present-day scenario is to develop polymer nanocomposites with desired thermal, mechanical, and barrier properties. The food packaging technology is based on the fact that the nanocomposites can adapt to changing environmental conditions and heal small cracks and fractures. It also creates an antimicrobial surface that promotes package permeability, preventing food from going bad. Additionally, it increases package permeability, creating an antibacterial surface that keeps food from spoiling. The majority of food packaging researchers worldwide have directed their attention towards polymer nanocomposites with different matrix, such as polyamide, polyethylene, polypropylene, polyvinyl chloride, and polyethylene terephthalate/liquid crystal polymer. This review gives an emphasis on the barrier, antioxidant, and antimicrobial properties in particular, other forms of nanofillers, methods of incorporating them into the polymer matrix, and surface functionalization are also discussed.