Controlled release fertilizer (CRF) plays a crucial yet necessary part in the sustainable agriculture industry. An alarming rise in call for crop production directly influences the increasing need for synthetically derived fertilizers and pesticides production. The application of CRF has been a gamechanger as an environmentally sustainable pathway to increase crop yields by paving desired phase of plant growth via a direct or indirect mechanism. The mechanism of CRF does not only decreases nutrient dissipation due to volatilization and leaching, but also provides a precisely appropriate nutrient release design that is suitable in the physiological and biochemical aspect of the plant growth. However, CRF is not deployed on larger scale of commercial agriculture practices due to being expensive, has relatively low efficiency in releasing nutrients and its coatings are largely composed of petroleum-based synthetic polymers. Alternatively, there are many polymers derived from renewable and biodegradable sources that can be used as coating material for CRF in the form of bio-nanocomposites. Having said that, there is an apparent gap between the mechanism of the CRFs for promoting plant growth and the prominent role of the nanocomposites especially bio-nanocomposites as coating material for CRF synthesis, thus the importance of nanotechnology application in enhancing the effectiveness of CRF. Therefore, this review attempts to bridge the stated gap and summarizes the comprehensive developments, application mechanisms and future potential of CRF as a fertilizer for crop sustainability.