Recently, using natural antibacterial agents instead of chemical preservatives in foods has garnered increasing attention. Accordingly, essential oils have been widely studied and applied in the functional packaging of food products as these liquid secondary plant metabolites are volatile, natural, and safe. Several studies have shown that, following the addition of essential oils, food packaging can enhance the antibacterial and antioxidant activities of foods and slow enzymatic browning; moreover, it alters the gaseous environment surrounding the food product and reduces water vapor penetration. This article introduces the biological mechanisms of plant essential oils and summarizes the current research, development, and applications regarding their utilization as an active ingredient. Indeed, myriad applications of essential oils have been shown to improve product quality and reduce associated waste: use in food packaging; introduction to active or intelligent packaging; addition to the surface coating of products or packaging; filling atmosphere packaging; introduction of small packaging bags to ordinary packaging; addition to packaging films. The common techniques used in plant essential oil application, including biodegradable biofilms, microcapsules, nanoemulsions, and electrospinning, are also described. The primary aim of this article was to provide a resource to inform the development of new applications of plant essential oils in the packaging field.