Smart and adaptive bionanocomposite materials represent a crucial innovation in sustainable technology, addressing the need for responsive materials that minimize environmental impact. This chapter delves into the processing and fabrication techniques for creating bionanocomposites tailored for biomedical, environmental, and energy applications. By merging biocompatible matrices with nanoscale reinforcements, these composites gain advanced functionalities, including self-healing, stimuli-responsive behaviour, and adaptive morphology, allowing them to respond to factors like pH, temperature, and stress—ideal for drug delivery, biosensing, environmental monitoring, and adaptive infrastructure. Beginning with the fundamentals of bionanocomposites, the chapter discusses the integration of nanomaterials such as graphene and metal nanoparticles, which enhance durability, electrical, and thermal properties. Advanced fabrication techniques, including electrospinning, sol–gel processing, and 3D printing, allow precise control over these materials’ architecture and properties. Challenges in processing, such as the need for strong matrix-nanomaterial interactions, are addressed through surface modification and functionalization methods. Further, the chapter explores adaptive fabrication control through artificial intelligence (AI) and machine learning (ML), which ensures real-time quality and reproducibility. These methods support efficient, sustainable production while allowing tailored design and functionality in composite materials. Concluding with perspectives on scalability, environmental implications, and future innovations, this chapter highlights the interdisciplinary approach necessary to harness bionanocomposites in sustainable development. By emphasizing advanced processing and adaptive capabilities, these materials hold transformative potential across diverse applications.