Abstract Smart packaging is about clever ways to package a product, providing quick, cheap and efficient ways to monitor environmental conditions of food in the supply chain. The terms active, intelligent and smart packaging refer to systems used for foods, pharmaceuticals and other products. Nanomaterials have been explored for their exceptional mechanical, thermal, optical and antimicrobial properties. Nanosensors have been researched extensively. Theories exist today for applications of these in food packaging industry. There is a vast scope for innovation and application of smart packaging materials based on various types of polymer nanocomposites and nanosensors for detecting quality of the stored food based on various parameters like pH, fermentation etc. and also to extend shelf life. These devices allow for conservation of food, maintaining freshness and flavour, being able to perform quality control, easy traceability and maintain compliance with health standards. This paper reviews these technologies and their future trends.