The extensive utilization of nonbiodegradable plastic agricultural mulch in the past decades has resulted in severe environmental pollution and soil fertility decline. Biodegradable mulch film (BMF) made from renewable resources has been considered an ideal alternative to traditional plastic mulch, offering a sustainable solution to address the challenges of plastic mulch recycling and the associated environmental contamination. More importantly, BMF is compostable, which has garnered significant attention in the realm of sustainable agriculture. This review summarizes recent advances in the application of renewable resources, including polysaccharide, protein, agricultural and forestry waste, and other biological feedstocks, for preparing BMF. Also, the physical characteristics and economic cost of BMF are discussed in detail. Lastly, current issues and future prospects are proposed for sustainable and cost-effective BMF.