Petroleum-based packaging has long dominated the packaging industry, raising environmental concerns. As a result, the packaging industry has started using nano bio-plastics. Incorporating nanoparticles, nano bio-plastic packaging helps in prolonging product shelf life. Additionally, packaging manufactured of nano bio-plastic is made of biodegradable polymers. Nano bio-films made from polylactic acid (PLA) and nanoclay were produced using a solvent casting process. 1.0%, 3.0% and 5.0% (wt.) of nanoclay were added to the PLA solution. The mechanical, chemical, morphological and transparency properties of nano bio-films were investigated. To improve their suitability for food packaging applications, tensile test, Fourier-transform Infrared Spectroscopy (FTIR), scanning electron microscopy (SEM) and UV-barrier test were performed. With tensile strength (TS) of 30.36 MPa and elongation at break (EAB) of 7.05%, respectively, nano bio-films with 3.0 wt. % nanoclay demonstrated higher mechanical properties than pure PLA film with about 35% of increment. In aspects of FTIR analysis, no significant differences were found with both nano bio-films and pure PLA film. The SEM morphology shows that adding nanoclay at 3.0 wt. % improves the adhesion between the PLA matrix and the nanoclay. The addition of nanoclay had a minimal impact on the PLA film's transparency, and it was interesting to see that nanoclay concentration of 1.0 wt. % and 3.0 wt. % had roughly the same light transmission values of 84.86% and 83.95%, respectively. According to the findings of this study, the PLA nano bio-film with 3.0 wt% nanoclay exhibits the optimum physico-mechanical properties.