The newly engineered functional systems of nanotechnology implemented in food packaging minimize food product loss by extending shelf life. The incorporation of nanostructured materials into packaging formulations enhanced the existing characteristics of food packaging materials by increasing the specific surface area of these biopolymers. Natural biopolymers were regarded as greener, more sustainable, and environmentally friendly materials. Starch nanocrystals have been employed effectively as fillers in polymer matrices to enhance mechanical and moisture barrier characteristics. Both chitin and chitosan nanoparticles were biocompatible, biodegradable, inexpensive in cost, and mucoadhesive in nature. Alginate nanoparticles demonstrated high thermal and chemical stability. Because of these features, polysaccharide-based nanoparticles were excellent candidates for nano reinforcements in bio-nanocomposites. The nano sized forms of starch, chitin, chitosan, and alginate are non-toxic and antimicrobial. This study focused on current advances in the development of food packaging films based on starch, chitin, chitosan, and alginate nanoparticles, as well as trends and challenges in the formulation of bio-based polymers. This review detailed the synthesis of starch, chitin, chitosan, and alginate nanoparticles using various techniques such as hydrolysis, ionic gelation, reverse micellization, emulsification, and crosslinking. This type of polysaccharide-based bio-nanocomposite is expected to revolutionize the entire food packaging industry.