Biopolymer nano and microencapsulation techniques are widely recognized for their eco-friendly properties and adaptability across industries. These methods involve encapsulating active compounds, such as pharmaceuticals, nutrients, or bioactive molecules, within biopolymer matrices, providing controlled release, enhanced stability, and targeted delivery. Commonly used biopolymers like chitosan, alginate, and gelatin are favored for their biocompatibility and biodegradability. Nanoencapsulation offers the benefit of improving the bioavailability of poorly soluble compounds, while microencapsulation is suited for larger payloads with a gradual release profile. Various fabrication techniques, including coacervation, electrospinning, and spray drying, are employed to create these systems. However, challenges persist in achieving uniform particle size distribution, maintaining high encapsulation efficiency, and ensuring long-term stability. The natural variability in biopolymer sources can also lead to inconsistencies in material properties, complicating the synthesis process. Furthermore, scaling up from laboratory to industrial production introduces additional complexities in quality control and reproducibility. Overcoming these hurdles requires a comprehensive understanding of biopolymer-agent interactions and continuous innovation in encapsulation technologies.