<p>Rapid expansion of e-commerce and projected growth of the world’s population to about 10&#xa0;billion by 2050, have intensified the demand for sustainable protective packaging solutions. Conventional petroleum-derived cushioning materials like EPS, EPE create white pollution due to their non-degradability and generation of secondary microplastics and nanoplastics, leading to an ecological crisis. In contrast, agro-waste-derived cushioning materials offer a viable and biodegradable solution that can help tackle packaging waste as well as green waste. This review critically examines the potential sources of agricultural waste, like rice straw, mycelium, cornstover, water hyacinth, and coconut husk, etc., and their properties, making them a suitable candidate for the production of sustainable cushioning material. It consolidates the findings on their chemical composition, mechanical testing parameters, and environmental compatibility. It also outlines the key challenges, like hydrophilicity, microbial susceptibility, and a lack of a unified testing framework for mechanical testing and cushion curve analysis of such biofoams. Furthermore, it emphasizes the need to replace the obsolete bursting strength metric with more relevant impact-based testing resonating with agro-waste-derived cushioning material. Future research should prioritize the development of standardized testing guidelines, optimization of formulations, ramping up production, and exploration of underutilized agricultural residues, and evaluating their long-term performance, biodegradability, and end-of-life behavior.</p>