The emergence of nanotechnology developments using nanodevices/nanomaterials opens up potential novel applications in agriculture and food sector. Smart delivery systems, biosensors, and nanoarrays are being designed to solve the problems faced in agriculture sector. Similarly, food sector is also benefited through the use of smart biosensors, packaging materials, and nanonutraceuticals. Despite the great potential of nanotechnology in agri-food sector, people are ambiguous about use in food applications because of suspected potential health risks and environmental concerns. Nanoparticles, due to their unique characteristics, including small size, shape, high surface area, charge, chemical properties, solubility and degree of agglomeration can cross cell boundaries or pass directly from the lungs into the blood stream and ultimately reach to all of the organs in the body. This is the reason why they may pose higher risk than the same mass and material of larger particles. In this paper, we have made an attempt to give an overview of nanotechnology developments in agri-food sector, risks associated with nanomaterials and toxicity regulations for policy framework.