Edible coatings have gained increasing attention in recent years as a sustainable and multifunctional approach for improving food preservation. Developed from food-grade biopolymers such as proteins, polysaccharides, and lipids, these coatings offer benefits not only in physical protection but also in reducing microbial spoilage through the inclusion of natural antioxidants and antimicrobial agents. Recent work has focused on enhancing these coatings with nanotechnology, which enables the precise encapsulation and controlled release of active compounds. In this context, nanoscale systems including nanoemulsions, nanoparticles, and nanocomposites, enhance barrier, mechanical, and optical properties while maintaining transparency and sensory appeal. Advances in green synthesis methods further support the development of eco-friendly nanomaterials, reinforcing the potential of edible coatings as a commercially viable solution. Nevertheless, challenges remain in scaling up production and navigating regulatory approval processes for nanomaterials. Consumer acceptance also relies on ensuring the safety, digestibility, and minimal sensory impact of coatings. This review summarizes recent advances in formulation, functional enhancement through nanotechnology, green synthesis, and commercialization challenges, offering a comprehensive outlook on the future potential of edible coatings in food packaging and preservation.