Polysaccharides are renewable biomacromolecules obtained from natural sources like plants, bacteria, and algae, and are utilized for production of nanomaterials. Chitosan, cellulose, starch, alginate, hyaluronic acid, dextran, pectin, and glycosaminoglycans are examples of polysaccharides often utilized in production of nanomaterials. Chitosan nanoparticles are utilized in administration of drugs, wound healing, and a wide range of biomedical applications. Nanocellulose, a cellulose derivative, is utilized in nanocomposites, drug delivery systems, and as reinforcing agent in a variety of materials. In food sector, starch nanoparticles are employed to encapsulate and regulate the release of beneficial substances. Polysaccharide nanoparticles are highly suitable for food packaging due to their biocompatibility, surface activity, and controlled release capabilities. Based on this, the article provides an overview of the usage of polysaccharides in the development of nanomaterials. The chemical, technical, and functional features of polysaccharides, as well as prospective sources and applications are discussed in this article.