Food packaging is a crucial medium for protecting food from contamination, and spoilage by intrinsic and extrinsic factors. Nevertheless, for the past two decades, packaging materials have become environmental concern due to their disposal challenges. Starch is an eco-friendly packaging alternative, and it possesses outstanding degradability and reproducibility. The objective of this review is to examine the different methods used for the synthesis of nanostarch and expose their food packaging applications. Major sources of bibliometric information such as Web of Science, Scopus, PubMed, and Google Scholar were extensively searched with keywords such as starch, nano starch, starch nanocrystal, bio-composite film, acid hydrolysis, cassava starch, maize starch, edible film etc., to obtain a database of 272 papers. Thirty-nine publications met the criteria for review. The application of biopolymers such as starch, protein, and cellulose in the manufacturing of biodegradable films is an innovative approach. Starch is considered a promising biopolymer owing to its low cost, biodegradability, diversity, and availability. Currently, nanotechnology has received a lot of importance in the food packaging sector. Biodegradable nanocomposite packaging is an innovative technique to wrap food for enhanced shelf-life. Numerous food components are employed in the development of nanoparticles which includes proteins, starch, lipids, and polysaccharides. Nanostarch has certain unique properties such as being biocompatible, less expensive, biodegradable, sustainable, and eco-friendly nature. At present, nanostarch based packaging is prepared by mixing starch and non-starch polymers such as chitosan, cellulose, gelatin, whey protein etc. to increase mechanical property. Hence, the preparation of starch nanocrystals-based packaging material presents a substantial improvement in barrier properties, tensile strength, elastic modulus and food quality, and shelf life. The present review gives a comprehensive understanding of the synthesis and characterization of the starch nanocrystal, its food packaging application, sustainability, and regulatory aspects alongside new perspectives which is inadequate in the literature.