This review highlights recent innovations in food packaging, emphasizing the shift from conventional petroleum-based materials to bio-based alternatives and smart packaging systems. Bio-based materials, such as starch, cellulose, and polyhydroxyalkanoates (PHA), offer sustainable solutions due to their biodegradability and reduced environmental impact. These materials are positioned as eco-friendly alternatives to traditional plastics but face challenges related to production costs and scalability. Additionally, advancements in smart packaging technologies, including sensor and indicator systems, provide real-time food quality monitoring, enhancing food safety and reducing waste. Active packaging technologies, incorporating natural antioxidants and moisture control, extend product shelf life and improve food preservation. Furthermore, these biopolymers typically present a lower CO₂ footprint, energy costs, and water consumption during production, compared to traditionally used synthetic plastics. The review identifies challenges, such as regulatory barriers and technological limitations, but also outlines significant opportunities for future research and innovation in the food packaging sector, aiming for more efficient, safer, and environmentally sustainable packaging solutions.