A popular fresh acid-coagulated cheese in South Asia, paneer is a highly perishable dairy product that is prone to quick microbiological deterioration and physicochemical changes after production. The short shelf life of paneer under typical refrigeration conditions (2–4 days at 4–8°C) poses significant distribution and marketing challenges for the dairy industry. Packaging technology is the most practical and cost-effective technique to extend shelf life, preserve sensory attributes, and ensure the microbiological safety of paneer. This review covers both conventional approaches like vacuum packaging and polyethene pouches as well as state-of-the-art methods like modified atmosphere packaging (MAP), active packaging systems, nanocomposite and bio-nanocomposite films, edible coatings, and intelligent packaging technologies. The literature from 2020 to 2026, which highlights developments in compostable multilayer laminates, cellulose nanocrystal-based packaging, plant-derived antimicrobial coatings, graphene oxide-reinforced films, and blockchain-integrated cold-chain monitoring, is given special attention. Along with pertinent international and Indian regulatory frameworks, methods for assessing physicochemical, microbiological, and sensory quality are thoroughly investigated. Environmental sustainability, consumer acceptance, and emerging trends are all discussed. Future directions and research gaps are identified to guide the development of safe, sustainable, and commercially viable paneer packaging options.