The environmental, economic, and operational limits associated with the physical, chemical, and microbiological techniques for the production of nanoparticles (NPs) are the principal obstructions to their rapid commercial applications in various fields including food packaging and sensing to ensure food quality and safety. Over the years, many reports revealed that the nanotechnological (metal-based NPs) application facilitates an alternate, interactive, reliable, as well as simple technology in the food industries and packaging sector. In this review, we summarized the usage of plant extract for the biosynthesis of bimetallic (Au–Ag) and monometallic counterpart NPs. Further, the impact of reaction conditions and identification of reactive phytochemicals with the reaction mechanism of these nanoparticles was reviewed. The recent progress on the applications of Ag, Au, or Au–Ag NPs in food quality analysis and food packaging was comprehensively discussed. The safety aspect of the nanoparticles for food sector use was also briefly stated.