Food contact materials (FCMs) are materials that come in contact with food products such as food packaging which play a significant role in the food quality and safety. Plastic, which is a major food packaging material, harms the eco-system, wildlife, and the environment. As a result, numerous researches have been in progress on alternative polymers, which has similar properties as plastic but is also environmentally friendly (biodegradable). In recent years, the utilization of seaweed polysaccharides has piqued interest due to its biodegradability, non-toxicity, antioxidant capabilities, and excellent film formation ability. However, it has a number of drawbacks such as low tensile strength, water solubility, and moderate antibacterial characteristics, among others. The addition of other biopolymers, nanoparticles, or natural active agents improves these features. In this review article, we have summarized the current state of seaweed polysaccharide research in active packaging, intelligent packaging, edible films, and coatings. It also highlights the physical, thermal, antioxidant, and other properties of these materials. Finally, the article discusses the relevant legislation as well as the field's future prospects. Research shows that seaweeds polysaccharide looks promising as a sustainable food contact material, but there is always a potential for development to make it market feasible. © 2021 by the authors. Licensee MDPI, Basel, Switzerland.