Bionanocomposites, an emerging class of hybrid materials developed by utilizing biopolymers such as cellulose, chitosan, starch, collagen, alginate, pullulan, gelatin, PLA (Polylactic acid), and PHA (Polyhydroxy alkanoate) with nanoscale fillers from a variety of categories, including ceramics (nanohydroxyapatite), silicates (silica and clays nanoparticles), carbon-nanomaterials (carbon nanotubes), inorganic nanoparticles, synthetic layered double hydroxides, and metal oxides. This combination produces a bionanocomposite exhibiting excellent mechanical strength along with superior biocompatibility as well as greater biological activity. Bionanocomposites containing nanosized fillers are suitable for drug delivery since they establish a complex diffusion pathway for encapsulated drugs. Drug-releasing bionanocomposites are perfect for wound-dressing applications because they absorb water, which is actually environmentally friendly, exhibit excellent adhesion to mucous membranes, and are resistant to tearing. These characteristics make these materials suitable for wound dressings. Bionanocomposites are establishing themselves as a promising solution for a wide range of new technologies, including drug delivery, matrix formation, tissue engineering, dental applications, bone fillers, biosensors, bioimaging, and wound dressing. Biopolymer-based nanocomposites have been recognized as an excellent substitute for traditional materials because they minimize reliance on fossil fuels and encourage the utilization of renewable resources. This chapter also investigates current advancements and utilization of various bio-based nanocomposites, especially in the biomedical, health care, and other sectors, compared to traditional materials.