<p>The demand for food production has escalated with the rise in global population, leading to a heavy dependency on synthetic fertilizers to enhance crop yields. However, prolonged and extensive use of these fertilizers poses significant risk to human health, the environment, soil biodiversity, and fertility. These concerns highlight the urgency for the development of efficient and eco-friendly biofertilizers capable of increasing agricultural productivity without detrimental environmental impacts. Recent studies have focused on integrating beneficial microbes into biopolymers to develop next-generation nano-biofertilizers. Nano-biofertilizers have shown potential in improving nutrient availability, enhanced self-life and viability of microbes, resistance to various climatic and pathogenic stresses etc. This review elucidates the advancements in nano-biofertilizer formulations using biopolymers, highlighting their functional perspective to modulate plant-microbe interactions and enhance agricultural productivity.</p> Graphical Abstract <p></p>