A million tonnes of plastic produced each year are disposed of after single use. Biodegradable polymers have become a promising material as an alternative to petroleum-based polymers. Utilising biodegradable polymers will promote environmental sustainability which has emerged with potential features and performances for various applications in different sectors. Seaweed-derived polysaccharides-based composites have been the focus of numerous studies due to the composites' renewability and sustainability for industries (food packaging and medical fields like tissue engineering and drug delivery). Due to their biocompatibility, abundance, and gelling ability, seaweed derivatives such as alginate, carrageenan, and agar are commonly used for this purpose. Seaweed has distinct film-forming characteristics, but its mechanical and water vapour barrier qualities are weak. Thus, modifications are necessary to enhance the seaweed properties. This review article summarises and discusses the effect of incorporating seaweed films with different types of nanoparticles on their mechanical, thermal, and water barrier properties.