Versatility of the anionic algal polysaccharide carrageenan has long been discussed and explored, especially for their affinity towards water molecules. While this feature is advantageous in certain applications such as water remediation, wound healing, etc., the usefulness of this biopolymer is extremely limited when it comes to applications such as food packaging. Scientists around the globe are carrying out research works on venturing diverse methods to integrate hydrophobic nature into these polysaccharides without compromising their other functionalities. Considering these foregoing studies, this review is designed to have an in-depth understanding of diverse methods and techniques adopted for tuning the hydrophobic nature of carrageenan-based bionanocomposites, both via surface alterations or by changes made to their chemical structure and attached functional groups. This review article mainly focuses on how the hydrophobicity of carrageenan bionanocomposites varies as a function of the type and refinement of carrageenan, and with the incorporation of additives including plasticisers, nanofillers, bioactive agents, etc. Incorporation of nanofillers such as polysaccharide-based nanoparticles, nanoclays, bioceramic and mineral based nanoparticles, carbon dots and nanotubes, metal oxide nanoparticles, etc., along with their synergistic effects in hybrid bionanocomposites are also dealt with in this comprehensive review article.