Food spoilage and safety are key concerns of the modern food sector. Among them, several types of polluting agents are the prime grounds of food deterioration. In this context, nanotechnology-based measures are setting new frontiers to strengthen food applications. Herein, we summarize the nanotechnological dimension of the food industry for both processing and packaging applications. Active bioseparation, smart delivery, nanoencapsulation, nutraceuticals, and nanosensors for biological detection are a few emerging topics of nanobiotechnology in the food sector. The development of functional foods is another milestone set by food nanotechnology by building the link between humans and diet. However, the establishment of optimal intake, product formulations, and delivery matrices, the discovery of beneficial compounds are a few of the key challenges that need to be addressed. Nanotechnology provides effective solutions for the aforementioned problem giving various novel nanomaterials and methodologies. Various nanodelivery systems have been designed, e.g., cochleate, liposomes, multiple emulsions, and polysaccharide-protein coacervates. However, their real applications in food sciences are very limited. This review also provides the status and outlook of nanotechnological systems for future food applications.