In nature, nano clays can be found in abundance; they are phyllosilicate minerals with a platelet-like shape, flaky, soft structure, low specific gravity, and high aspect ratio. Physical, chemical, mechanical, and barrier properties are all greatly enhanced when clay components are included into a polymer matrix. Today's major nanocomposite food packaging is made from nanomaterials such silver nanoparticles, zeolites, nano zinc oxide, and nano clay. A variety of nano clay modification procedures allow for the incorporation of desirable characteristics into film packaging. Industries and academic institutions alike have been doing extensive research activities to examine the functions and application of nano clay for food packaging. Here, we review the many natural clays currently in use for food packaging. Nano clay safety and risk assessment issues are discussed, as are the features of nano clay composite, the process of oxygen and ethylene scavenging by clay, the use of clay for the engineering of composite film qualities, and so on. The possible toxicity of nano clay to people as a result of prolonged exposure is also discussed.