Biological nanocomposites are a valuable addition to the existing nanocomposite materials and eventually can substitute petroleum-based composite materials in numerous applications due to their inherent advantages such as biodegradability, eco-friendliness, low cost, and easy availability to name a few. Recently, polymer–clay nanocomposites have achieved much more attention due to their enhanced properties such as size dispersion and significant enhancement in physicochemical and mechanical properties in comparison to the pure polymer systems. Among various biopolymers, starch is one of the most abundant natural polymers on the earth and is highly valuable due to its chemical and physical properties. Starch polymer has highly increased potential as an alternative to petroleum-based materials. However, starch cannot be used alone and starch–clay nanocomposite has emerged as a new potential green sustainable material. This article focuses on recent progress in starch-based nanocomposites with particular emphasis on starch–clay nanocomposite preparation, properties, and applications.