Growing environmental concerns over petroleum-based plastic packaging have increased interest in sustainable, biodegradable, and edible alternatives for food packaging applications. Pectin, a naturally occurring plant polysaccharide, has gained considerable attention as a promising biomaterial for edible packaging due to its biodegradability, biocompatibility, non-toxicity, and excellent film-forming ability. Moreover, recovering pectin from fruit and vegetable processing by-products supports agro-waste valorisation and aligns with circular economy principles. This review discusses major pectin sources and recent extraction technologies, including conventional acid extraction and green methods such as microwave-assisted, ultrasound-assisted, enzyme-assisted, subcritical water extraction that critically influence yield and structural attributes governing film functionality. Fabrication strategies for pectin-based edible films, particularly solvent casting and extrusion, are evaluated, with emphasis on the role of plasticizers in modulating film microstructure and functionality. Future research must optimise green extraction, composite/active systems, and cost-effective large-scale production for sustainable food packaging. Overall, pectin-based edible films provide a promising approach for sustainable food packaging and agro-industrial valorisation.