Protein and polysaccharides are the mostly used biopolymers for developing packaging film and their combination-based composite produced better quality film compared to their single counterpart. The combination of protein and polysaccharides are superior owing to the better physical properties like water resistance, mechanical and barrier properties of the film. The protein/polysaccharide-based composite film showed promising result in active and smart food packaging regime. This work discussed the recent advances on the different types of protein/polysaccharide combinations used for making bio-based sustainable packaging film formulation and further utilized in food packaging applications. The fabrication and properties of various protein/polysaccharide combination are comprehensively discussed. This review also presents the use of the multifunctional composite film in meat, fish, fruits, vegetables, milk products, and bakery products, etc. Developing composite is a promising approach to improve physical properties and practical applicability of packaging film. The low water resistance properties, mechanical performance, and barrier properties limit the real-time use of biopolymer-based packaging film. The combination of protein/polysaccharide can be one of the promising solutions to the biopolymer-based packaging and thus recently many works has been published which is suitable to preserve the shelf life of food as well trace the food spoilage during food storage.