The global concern over the environmental protection and bio‐sustainability of plastic waste materials has prompted a vibrant search for renewable and biodegradable polymers in the academia and industrial sectors. Amidst other biopolymers, poly(lactic acid) (PLA) is identified as the most promising thermoplastic aliphatic polyester. PLA is derived from agricultural products with unique physical and mechanical properties that are comparable with the conventional petroleum‐derived polymers. Yet, some of the properties are insufficient for advanced materials applications. Rigid nanoparticles are incorporated in the PLA matrix to alleviate its properties for specific high‐performance applications. Here, we report various approaches of preparing functional PLA nanocomposites with emphasis on the strengths and weaknesses of each of the methods, as well as the achieved properties enhancement for a targeted application. Designing high‐performance PLA nanocomposite involves careful selection of the most appropriate nanofillers or combinations of nanofillers, preparation technique and processing parameters. Besides multi‐walled carbon nanotubes (CNT) and montmorillonite (MMT) that are prominent as nucleating agents to achieve high thermal and mechanical properties, other nanofillers like silver nanoparticles (AgNP) play critical roles in improving antibacterial and high‐performance properties of PLA.