The growing concern about food safety and the need for environmental sustainability has triggered the shift from traditional plastic packaging to eco-friendly packaging materials derived from biological resources, enhanced with nanotechnology. Different challenges, such as low mechanical strength, thermal instability, barrier properties and microbial susceptibility, are being observed in traditional packaging. In this chapter, we discuss nanomaterials that are integrated with biopolymers for food packaging to address these issues and increase their physicochemical properties, functionalities, as well as practical applications. Biopolymers such as polylactic acid (PLA), chitosan, gelatin, cellulose and starch-based films, are increasingly being used and further reinforced with organic nanoparticles (nanocellulose, nano starch, carbon dots, and protein nanoparticles) and inorganic nanoparticles (silver, zinc oxide, titanium dioxide etc.) are addressed in the chapter. This chapter classifies and analyses nanomaterials according to their origin and function, demonstrating the enhancement of barrier properties, antimicrobial activity, UV shielding, and thermal resistance in nano-biocomposites. Special attention is paid to their application in smart packaging systems, including active systems that release antimicrobials or antioxidants and intelligent systems containing nano sensors that check for freshness and contamination. Examples of enhanced shelf life and quality preservation are discussed in fruits, vegetables, dairy, meat and bakery goods. The chapter also examines important safety, nanoparticle migration, toxicity regulatory issues, and the environmental impact, highlighting the emerging need for globally unified rules. To sum up, the world’s targets for sustainable food systems, reducing waste, consumer health protection and safeguarding public health are enabled by nano-biomaterials, making it the most suitable innovative solution to the challenges of packaging.