The food packaging business is rapidly expanding, necessitating careful attention to the problem of sustainability when substituting plastic products with biodegradable packaging. The functional features of biobased packaging, such as mechanical and barrier qualities, are significant challenges. The same package with varying functionality may be created using different nanomaterials as fillers in packaging composites. This chapter focuses on applying bio-nanocomposites in food packaging for active, intelligent, and smart functioning. These Bio-nanocomposites can be made from natural or synthetic polymers with biodegradable characteristics. The development of bio-nanocomposites in food packaging is covered, along with a detailed analysis of several forms of nanomaterials used in food packaging. Bio-nanocomposites are presently employed in food packaging research to build packages with various functions such as oxygen scavenging, time temperature indication, controlled release of nutraceuticals and bioactive substances, antibacterial properties, and sensing capabilities. Because the toxicological impact of using nanoparticles has minimal scientific validity, these biobased nanocomposite packages have limited interaction with food products. As a result, additional experimental work on this intriguing subject is required.