Packaging is one of the major domains in the food processing industry that reduces waste and enhances product shelf life. Recently, research and development have focused on bioplastics and bioresources to combat environmental issues caused by the alarming growth of single-use plastic waste food packaging. The demand for natural fibres has recently increased because of their low cost, biodegradability and eco-friendliness. This article reviewed recent developments in natural fibre-based food packaging materials. The first part discusses the introduction of natural fibres in food packaging, with a focus on fibre source, composition and selection parameters, while the second part investigates the physical and chemical ways to modify natural fibres. Several plant-derived fibre materials have been utilised in food packaging as reinforcements, fillers and packaging matrices. Recent investigations developed and modified natural fibre (physical and chemical treatments) into packaging using casting, melt mixing, hot pressing, compression moulding, injection moulding, etc. These techniques majorly improved the strength of bio-based packaging for commercialisation. This review also identified the main research bottlenecks and future study areas were suggested.