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Globalization has increased the consumer's demand for safe and quality foods. To make food available to consumers from farm to fork, packaging plays a crucial role. The objective of packaging is to shield the foodstuff from degrading and to serve as the medium of communication between the processing industry and the consumers. Conventionally, several materials are used in the packaging such as laminates, plastics, glass, metal, etc., but with the advent of technology, newer and novel smart packaging technologies have entered this field. Smart packaging in the form of active and intelligent packaging not only acts as a barrier to external influences but also prevents internal deterioration. Oxygen scavengers, moisture controllers, antioxidants, CO₂ absorber/emitter, antimicrobial agents, etc., are some of the vital active packaging systems. On the other hand, an intelligent packaging system contains internal or external indicators and sensors that monitor the condition of packed food and gives information about its quality during storage and transportation. It seems that these interventions in packaging have very positive effects on the whole industry, but it is observed that this advancement in the packaging has also raised questions about its disposal. To overcome this issue, industries have started using smart packaging design along with the sustainable packaging trend. Communication with the recycling bodies at the time of development will ensure the smart packaging fit to be recycled. Considering such standards for smart packaging will not only create a healthy bond between industries and consumers but will also help in sustainable development. This chapter mainly focuses on the advancement of the packaging system associated with the agri-food sector. It also discusses how the implementation of these technological advancements will help the industries toward sustainable development.