The integration of biosensors and the Internet of Things (IoT) in food packaging is gaining significant interest in rapidly enhancing food safety and traceability worldwide. Currently, the IoT is one of the most intriguing topics in the digital and virtual world. Biosensors can be integrated into food packaging to monitor, sense, and identify early signs of food spoilage or freshness. When coupled with the IoT, these biosensors can contribute to data transmission via IoT networks, providing real-time insights into food storage and transportation conditions for stakeholders across each stage of the food supply chain, facilitating proactive decision-making practices. The technologies of combining biosensors with IoT could leverage artificial intelligence (AI) to enhance food safety, quality, and security in food industries, compared to conventional existing food inspection technologies, which are limited to assessing weight, volume, color, and physical appearance. This review focused on highlighting the latest and existing advancements, identifying the knowledge gaps in the applications of biosensors and the IoT, and exploring their opportunities to shape future food packaging, particularly in the context of 21st-century food safety. The review also aims to investigate the role of the IoT in creating smart food ecosystems and examines how data transmitted from biosensors to IoT systems can be stored in cloud-based platforms, in addition to addressing upcoming research challenges. Concerns of data privacy, security, and regulatory compliance in implementing the IoT and biosensors for food packaging are also addressed, along with potential solutions to overcome these barriers.