This review examines innovative green biomaterials for food packaging, emphasizing their critical role in mitigating plastic waste pollution. As awareness of consumers and regulations rises, the industry is seeking for advanced renewable resources. The authors divided primary advancements into natural polymers, polylactic acid (PLA) and other biodegradable plastics, composites, and active/smart packaging. Natural polymers are compostable materials, and thinner polylactic acid (PLA) and polyhydroxyalkanoates (PHA) biodegradable plastics are effective materials for performance. Composite material makes the absorption more active and active, and intelligent packaging devices make food safer for really active packaging. Their analysis of the life cycle assessment (LCA) shows that such new materials have a greater environmental benefit than conventional plastics. Despite these developments, production methods and consumer barriers remain some of the challenges that various stakeholders face. The message is that more research and engagement of relevant players is critical to enable the movement toward the green package. Employing these innovations, however, the food packaging industry will be able to minimize its negative impact on the environment and satisfy the needs of customers at the same time.