In the recent years, considerable interest has been gained by nanocomposites - composites with at least one phase having nano dimensions. Here, the nanoparticles are added to a matrix thereby improving a particular property of the material. The increased surface area of the nanoparticle alters the physical and chemical properties. Advanced and innovative approaches are underway in controlling the nano structures. The properties are dependent on the parent material and also on the interfacial characteristics and morphology. The profound interest in the nanocomposites aiming at an environmentfriendly procedure led to the development of novel biomass based nanocomposites where the biomass acts as matrix and nanofillers act as reinforcement. Biocompatibility and biodegradability are the advantages that throw limelight to the field over the conventional ones. Nanomaterials resulting from biomass (renewable) are potential alternatives for the current materials based on petrochemical (non-renewable) and with the help of an effective novel catalyst, one can improve the targeted products’ yield. The applications range from several new technologies and commercial opportunities in aerospace, sports, electronics, automotive, structural, biotechnology and other industries. This chapter comprehensively reviews the present research endeavors, developments, production methods, challenges and future scope in the field. © 2017 by Nova Science Publishers, Inc.