This chapter explores the role of frugal innovation as a transformative approach to sustainable packaging, particularly in the context of resource-constrained environments. Frugal packaging emphasizes affordability, simplicity, local sourcing, and environmental sustainability, providing practical solutions to address the challenges of waste reduction and resource efficiency. By examining a range of cases from emerging economies, including Africa, Brazil, China, India, and Thailand, the chapter highlights how locally sourced materials, such as banana leaves, bamboo, and agricultural by-products, are utilized to create eco-friendly and cost-effective packaging solutions. The analysis also addresses the diffusion challenges of frugal packaging, contrasting its adoption mechanisms with those of high-tech sustainable packaging, and underscores the importance of supportive policies, social capital, and stakeholder collaboration. By integrating traditional knowledge and modern sustainability practices, frugal packaging innovations reduce environmental impact and also promote circular economy principles and social inclusiveness. The chapter contributes to the broader discourse on sustainable development by positioning frugal packaging as a viable alternative for low-income markets, urging further research and action to scale these innovations globally.