Biodegradable polymer nanocomposites, due to their biodegradability and other improved properties possess tremendous scope in the industrial sector. This current article reviews the recent studies carried out over biodegradable polymer nanocomposites that includes preparation, characterization, properties, and applications of nanocomposites based on biodegradable polymers. An orderly introduction of nanocomposites prepared by using various biodegradable aliphatic polyesters and polymers obtained from biomass products has been brought about. A wide range of organic and inorganic nanoparticles was used as additives or fillers to prepare nanocomposites with improved desired properties. Considering vast research on layered silicates/polymer nanocomposites, a special emphasis has been summarized at the end of the review.