Biodegradable plastics present a compelling option compared to traditional petroleum-based plastics, providing a means to mitigate environmental pollution and promote sustainable material utilization. Despite the global interest and innovation surrounding bioplastics like polylactic acid (PLA), polyhydroxyalkanoates (PHAs), and starch-based polymers, their uptake in developing nations is alarmingly minimal. This investigation analyzes the various socioeconomic and environmental obstacles that hinder the adoption of biodegradable plastics in low- and middle-income countries (LMICs). By conducting a thorough examination of scholarly articles, policy documents, and case studies from areas including South Asia, Sub-Saharan Africa, and Southeast Asia, this paper highlights significant challenges: elevated production and import expenses, insufficient local manufacturing capabilities, a deficit in public awareness and education, and inadequately developed waste management systems that struggle to process biodegradable materials efficiently. Moreover, the lack of explicit policy guidelines, economic incentives, and uniform labeling standards undermines market confidence and complicates regulatory enforcement. The results highlight the critical necessity for governmental action, funding in innovative studies and local manufacturing technologies, as well as the encouragement of decentralized waste management approaches. By overcoming these obstacles, developing nations can more efficiently shift to sustainable plastic alternatives and minimize their environmental impact while promoting local economic opportunities in the green materials sector.