The current review focuses on the applications of polymer nanocomposites in the packing industry. Nanocomposite fabrication may be carried out through several synthetic techniques based on the type of material required. Basically, it is the composite formation of polymeric matrix and a reinforcing nanofiller. The nanoclay used for the modification of nanocomposites acts as a reinforcement or filler. Montmorillonite (MMT) is the most frequently used clay material to obtain the desired properties of nanocomposite. Clay reinforcement enhances the food packing properties of the material because of its properties as flame retardant, tensile features, barrier properties, and biodegradability. Among bottom-up and top-down techniques, sol-gel synthesis, self-assembly, and polymerization are the most common techniques used for the synthesis of nanocomposites. Nanocomposites derived from bio-polymers make the material biodegradable which, in turn, is one of the most desirable features for their future use. Owing to improved characteristics, clay nanocomposites form a superior class of materials for food packaging, yet much finer dispersion of nanofillers and compatibility may be devised.