Among the various electrically conducting polymers, polyaniline (PANI) has gained attentions due to its unique properties and doping chemistry. A number of electrically conducting biodegradable polymers has been synthesized by incorporating a biodegradable content of cellulose, chitin, chitosan, etc. in the matrix of PANI. The hybrid materials are also employed as photocatalysts, antibacterial agents, sensors, fuel cells and as materials in biomedical applications. Furthermore, these biodegradable and biocompatible conducting polymers are employed in tissue engineering, dental implants and targeted drug delivery. This review presents state of the art of PANI based biodegradable polymers along with their synthesis routes and unique applications in diverse fields. In future, the synthesis of PANI-grafted biodegradable nanocomposite material is expected to open innovative ways for their outstanding applications.