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Biodegradable polymer nanocomposites have gained attention in recent years owing to their antimicrobial activity. The article summarizes recent developments in improving antimicrobial, mechanical and barrier properties of biodegradable polymers chitosan, cellulose, gelatin and starch. ZnO, TiO2, reduced graphene oxide and silver reinforced biodegradable polymer nanocomposites exhibit improved tensile strength due to intercalation of nanomaterials into the polymer matrices. Silver nanoparticle reinforced polymer nanocomposites have shown significant antimicrobial properties against various strains of bacteria and fungi. Although, development of antimicrobial nanomaterials embedded packaging films has helped to augment shelf-life of food, leakage of nanomaterials into the packaged food remains an area of concern.