<p>The extensive use of synthetic non-biodegradable plastics in food packaging has led to substantial environmental pollution. This has created an imperative need to develop sustainable and eco-friendly packaging materials capable of undergoing timely biodegradation. Biodegradable polymers such as polylactic acid, polyhydroxyalkanoates, polycaprolactone, polybutylene succinate, polybutylene adipate terephthalate, polyglycolic acid, starch, cellulose, gluten, gelatin and collagen show promise as potential alternatives to replace non-biodegradable plastics. However, enhancements in the properties of these biopolymers are obligatory to meet the demanding requirements of food packaging. In this regard, nanotechnology offers an exciting prospect to develop biopolymer-based nanocomposites with remarkable improvements in mechanical, thermal, barrier and functional properties through incorporation of nanoscale fillers. This review highlights recent advances based on sustainable polymer nanocomposite materials for functional food packaging applications. Additionally, it discusses the various challenges involved in commercialization of biopolymer along with a discussion on potential risks associated with certain fillers and strategies for safer material development. Taken together, this comprehensive review emphasizes the ongoing research and progress in the field of sustainable, biodegradable and eco-friendly polymer nanocomposites for food packing applications.</p>