Alginate-based packaging materials have emerged as promising alternatives to conventional petroleum-based plastics due to their biodegradability, renewability, and versatile functionalities. This review provides a comprehensive analysis of the recent advances in the development and application of alginate-based films and coatings for food packaging. The composition and fabrication methods of alginate-based packaging materials are discussed, highlighting the incorporation of various functional compounds to enhance their physicochemical properties. The mechanisms of action and the factors influencing the release and migration of active compounds from the alginate matrix are explored. The application of alginate-based packaging materials for the preservation of various food products, including meat, fish, dairy, fruits, and vegetables, is reviewed, demonstrating their effectiveness in extending shelf-life and maintaining quality. The development of alginate-based pH-sensitive indicators for intelligent food packaging is also discussed, focusing on the colorimetric response of natural pigments to spoilage-related pH changes. Furthermore, the review highlights the challenges and future perspectives of alginate-based packaging materials, emphasizing the need for novel strategies to improve their performance, sustainability, and industrial adoption.