Lipid-based edible films and coatings are becoming a viable and efficient way to improve food quality and extend shelf life in the rapidly changing food packaging industry. The goal of this critical analysis is to provide a thorough overview of the lipids and waxes, and their applications and functions in food packaging. It investigates the special benefits of lipids, such as waxes, resins, and fatty acids, in offering efficient gas, water vapour, and microbiological barriers. Lipid-based composite films exhibit excellent mechanical, thermal, and barrier capabilities when combined with other biopolymers, including proteins and polysaccharides. The paper also discusses how these cutting-edge coatings are used to preserve a variety of fruits and vegetables, emphasising how they help retain firmness, regulate respiration rates, and lessen moisture loss. To meet consumer and regulatory concerns, the safety aspects of lipid-based coatings are also covered. Lipid-based films help minimise the loss of moisture and respiration, and reduce the growth of microbial activity by maintaining the quality of food. Lipid-based edible films maintain the shelf life of numerous food products, including vegetables and fruits. Lipids, particularly waxes, provide barriers against microbes and oxygen, and increase the preservation of various food products. By limiting access of oxygen, lipid-based edible films can slow down the rate of respiration of various food products, like fruits and vegetables—also extending the shelf life of fruits. Lipid-based films and coatings provide various benefits, certain challenges to overcome, like adhesion and flexibility of the film, mainly used in combination with polymers. Coatings integrate various lipids with several polymers, improving various mechanical, chemical, and thermal properties. Certain waxes, like beeswax and carnauba wax, improve water resistance in vegetables and fruits.