Biodegradable plastics have been proposed as an alternative to conventional plastics for many applications, such as single-use plastic bags, disposable cutleries and tablewares, and agricultural plastic mulch films. However, concerns have arisen about environmental sustainability of biodegradable plastics, especially regarding degradability, generation of biodegradable micro- and nanoplastics, and release of additives. Here, we critically evaluate literature on the degradation and ecotoxicity of biodegradable plastics with the consideration of environmentally relevant concentrations. Our evaluation suggests that, provided with proper disposal and full biodegradation, biodegradable plastics, including biodegradable micro- and nanoplastics, would not accumulate substantially in the environment and would be far from reaching concentrations at which negative impacts on ecosystems can be expected. In addition, we highlight existing regulatory efforts to prevent adverse ecotoxicity of biodegradable plastics. To ensure timely biodegradation under various disposal conditions, we propose to calibrate the actual biodegradability in disposal environments against the intrinsic biodegradability in standards. Further, we recommend to supplement biodegradability certificates on biodegradable plastics with clear disposal instructions, to ensure proper end-of-life management. With proper testing, comprehensive labeling, and effective management, we believe that, for certain applications, biodegradable plastics are a promising substitute for conventional plastics.