The demand for biobased materials for various end‐uses in the bioplastic industry is substantially growing due to increasing awareness of health and environmental concerns, along with the toxicity of synthetic plasticizers such as phthalates. This fact has stimulated new regulations requiring the replacement of synthetic conventional plasticizers, particularly for packaging applications. Biobased plasticizers have recently been considered as essential additives, which may be used during the processing of compostable polymers to enormously boost biobased packaging applications. The development and utilization of biobased plasticizers derived from epoxidized soybean oil, castor oil, cardanol, citrate, and isosorbide have been broadly investigated. The synthesis of biobased plasticizers derived from renewable feedstocks and their impact on packaging material performance have been emphasized. Moreover, the effect of biobased plasticizer concentration, interaction, and compatibility on the polymer properties has been examined. Recent developments have resulted in the replacement of synthetic plasticizers by biobased counterparts. Particularly, this has been the case for some biodegradable thermoplastics‐based packaging applications.