This chapter mainly reviews the concept, properties and processing, and design method of the eco-friendly polymer nanocomposite (EPN), which is generally biodegradable and renewable. The major attractions of EPN are that they are environmentally friendly, sustainable, and degradable. These polymer composites can be easily composted or disposed without harming the environment. Some efforts have been made on attaining biodegradable reinforcing fillers giving improved performance of composites. Another concern is focused on employing recyclable synthetic fibers with thermoplastic composites to reduce the waste of fillers, and also some research is devoted to reusing or recycling the whole composites for the similar purpose. Simultaneously, people also would like to make composites manufactured with traditional production process become eco-friendly by extra reprocessing. Throughout the stages of development--design, appraisal, manufacture, use, reuse-recycling, and disposal--researchers are supposed to be fully engaged in reducing waste as much as possible, keeping in mind the environment all the time. A series of natural or synthetic materials have been used, such as cellulose, thermoplastic starch, etc. The challenge posed by eco-friendly composites also needs considerable attention in terms of poor bonding between matrix and fillers, loose control of fiber orientation, and difficulty in shaping nanoscale particles.