Active biodegradable packaging are being developed from biodegradable biopolymers which may solve the environmental problems caused by petroleum-based materials (plastics), as well as improving the shelf life, quality, nutritional profile, and safety of packaged food. The functional performance of active ingredients in biodegradable packaging can be extended by controlling their release profiles. This can be achieved by incorporating active ingredients in sandwich-structured packaging including multilayer and composite packaging. In multilayer materials, the release profile can be controlled by altering the type, structure, and thickness of the different layers. In composite materials, the release profile can be manipulated by altering the interactions of active ingredients with the surrounding biopolymer matrix. This article reviews the preparation, properties, and applications of multilayer and composite packaging for controlling the release of active ingredients. Besides, the basic theory of controlled release is also elaborated, including diffusion, swelling, and biodegradation. Mathematical models are presented to describe and predict the controlled release of active ingredients from thin films, which may help researchers design packaging materials with improved functional performance.