Sandeep Paudel, Sumi Regmi, Srinivas Janaswamy
ABSTRACT The growing environmental and health concerns associated with petroleum‐based plastics have intensified global efforts to develop renewable, biodegradable and sustainable alternatives for food packaging. Among available biopolymers, cellulosic materials have emerged as particularly promising due to their natural abundance, renewability, biodegradability and excellent film‐forming capabilities. This review provides a comprehensive overview of recent advances in cellulose extraction from agricultural biomass, covering traditional acidic, alkaline and solvent‐based methods, as well as emerging green‐assisted techniques—including microwave, ultrasound and enzymatic treatments—that efficiently remove lignin and hemicellulose while preserving cellulose integrity. The functional performance of cellulose‐based packaging films is also discussed, highlighting key attributes such as mechanical strength, barrier efficiency, hydrophobicity, UV protection, antioxidant activity and antimicrobial properties. Films derived from agricultural residues often retain residual lignin and bioactive compounds, which impart enhanced UV‐blocking and antioxidant functionalities, thereby expanding their applications in active food packaging. Future perspectives emphasize the design of cellulose‐based composite films with enhanced mechanical and barrier properties, along with the integration of active and intelligent features for real‐time monitoring of food quality. Transitioning from laboratory research to industrial production will require adopting green extraction technologies and scalable manufacturing methods that ensure both environmental and economic sustainability. Overall, cellulose‐based packaging films represent a sustainable, functional and intelligent alternative to plastics, supporting circular bioeconomy principles and contributing to achieving several United Nations Sustainable Development Goals (SDGs).