An environmentally friendly packaging material was produced from starch with the incorporation of citrus lemon peel ethanol extract. Gas chromatography-mass spectrometry of the citrus lemon extract revealed the presence of compounds such as fatty acid, terpenes, aromatic esters, aldehyde, and polyphenolics. Bioplastic films produced with different percentages of the citrus lemon ethanol extract are designated as film0%, film5%, film10%, film15%, and film20%. From the physico-tensile properties of the bioplastics, the density ranges from 0.12 to 0.20 g cm−3, thickness, 0.25 to 0.74 mm, moisture content, 12.00 to 14.86, water-solubility, 1.23 to 2.84%, opacity, 0.36 to 0.67% and, tensile strength, 9.94 to 25.60 MPa. The 2,2-diphenyl-2-picrylhydrazyl anti-oxidant radical activities of the biofilms range from 1.44 to 6.19% and total phenol content, 0.01 to 0.32%. Proximate analysis of the fish after packaging revealed a decrease in moisture content from 38.69% ( $${\text{film}}_{{{{o\% }}}}$$ ) to 12.01% ( $${\text{film}}_{{20{{\% }}}}$$ ) and an increase in fat (20.93%— $${\text{film}}_{{0{{\% }}}}$$ to 24.92%— $${\text{film}}_{{20{{\% }}}}$$ ), and protein (30.19%— $${\text{film}}_{{0{{\% }}}}$$ to 37.06%— $${\text{film}}_{{20{{\% }}}}$$ ). Biochemical results revealed closeness of the peroxide, saponification, and total volatile basic nitrogen values of the fresh Pp fish and packed fish with film20%. The fatty acid analysis results showed that bioplastic with the highest amount of added citrus lemon extract had the best result; lowest saturated fatty acid, highest unsaturated fatty acid, and polyunsaturated fatty. Thus, good active packaging films have been produced from this research using waste citrus peel ethanol extract additive.