Food packaging plays a crucial role in the food supply chain by aiding in food preservation and reducing food losses throughout the distribution process. The extensive, unregulated utilization, and waste mismanagement of food packaging materials made up of conventional petroleum‐based plastics has led to a significant environmental crisis. Egg components‐based food packaging has attracted considerable attention from the global packaging industry as a viable alternative to synthetic polymers due to its biodegradability, sustainability, and health‐related benefits. This comprehensive review explores the composition and properties of egg components (eggshell, eggshell membrane, egg white, and egg yolk), and recent advancements in biodegradable packaging films derived from them. Additionally, it introduces the characteristics of these films and their applications in food, highlighting their biodegradability, sustainability, and suitable mechanical, barrier, thermal, optical, antioxidant, and antimicrobial properties as substitutes for traditional synthetic polymers. The utilization of various egg components in the packaging industry is a safe, non‐toxic, cost‐effective, and economical approach. However, it was found that incorporating active compounds from natural sources into packaging films, as well as composite films composed of egg components combined with other biopolymers, resulted in superior properties, compared to single component films. Moreover, the application of novel technologies in film development has proven to be more effective than conventional methods. These innovative egg components‐based packaging films can be optimized and commercialized for use as packaging materials for food products.