In the current strive towards a sustainable future, renewable material resources are increasingly gaining attention and are being investigated for the development of future alternatives to conventional products. This strive is also steadily increasing the demand for new materials with various functionalities and tenable properties. Nanocellulose, a product from renewable materials, has been gaining attention for its utilization in food packaging. This is occasioned by its eco-friendly and biodegradable properties. This review attempts to establish acceptable processes for obtaining nanocellulose and its functionalized form for applications in food packaging. The development and promises of nanocellulose food packaging materials are addressed, together with current challenges and future directions to help transform research developments into commercial products. This review also discussed antibacterial substances utilized in PLA/nanocellulose-based packaging. The latest research on the processing and modification of nanocellulose-based antimicrobial materials against viruses, bacteria, fungi, algae, and protozoa by using variable functional groups is highlighted in this review, which overall focuses on more environmentally friendly food packaging with improved antimicrobial properties. Additionally covered are the issues with industrial manufacture and the potential development of nanocellulose-based antibacterial compounds.