Smart packaging of fresh produce is an emerging technology toward reduction of waste and preservation of consumer health and safety. Smart packaging systems also help to prolong the shelf life of perishable foods during transport and mass storage, which are difficult to regulate otherwise. The use of these ever-progressing technologies in the packaging of fruits has the potential to result in many positive consequences, including improved fruit quality, reduced waste, and associated improved public health. In this review, we examine the role of smart packaging in fruit packaging, current-state-of-the-art, challenges, and prospects. First, we discuss the motivation behind fruit quality monitoring and maintenance, followed by the background on the development process of fruits, factors used in determining fruit quality, and the classification of smart packaging technologies. Then, we discuss conventional freshness sensors for packaged fruits including direct and indirect freshness indicators. After that, we provide examples of possible smart packaging systems and sensors that can be used in monitoring fruits quality, followed by several strategies to mitigate premature fruit decay, and active packaging technologies. Finally, we discuss the prospects of smart packaging application for fruit quality monitoring along with the associated challenges and prospects.