With the rising global energy demands, there is a pressing need for the invention of efficient and reliable energy storage systems. This research centers on the creation and analysis of flexible dielectric capacitors composed of polymer nanocomposites (PNCs), incorporating a blend of polyvinyl alcohol (PVA) and polyvinyl pyrrolidone (PVP) as the base polymer, with multi-walled carbon nanotubes (MWCNTs) and gold nanoparticles (AuNPs) serving as nanofillers. The AuNPs were produced through an environmentally friendly synthesis method. Films made from PVA/PVP blended with MWCNTs and AuNPs were fabricated using the casting approach. Various characterization methods, including TEM, XRD, FTIR, and UV–Vis spectroscopy, were utilized to evaluate the samples. A detailed analysis of their electrical/dielectric characteristics was conducted. XRD analysis revealed a significant decrease in crystallinity from 55% for the pure PVA/PVP blend to 37% for the 1.6 wt% nanofiller composite, indicating increased amorphous content, which facilitates better ion mobility. FTIR confirmed strong interactions between the polymer matrix and nanofillers, with intensified vibrational peaks pointing to enhanced molecular dynamics. UV–Vis spectroscopy demonstrated a red shift in the absorption edge, and Tauc plot analysis showed a reduction in the indirect/direct optical band gap from 4.84 eV/5.68 eV for the pure blend to 4.26/5.35 eV for the nanocomposite with 1.6 wt% nanofillers. The addition of nanofillers resulted in improvements in their dielectric features, which exhibited a significant performance improvement, with the dielectric constant (ε′) reaching approximately 1100 at low frequency for the 1.6 wt% nanofiller sample, compared to 9 for the pure blend. Additionally, the dielectric loss (ε'') and tangent loss (tan δ) were reduced, with tan δ showing a decrease from 15 for the pure blend to 2 for the 1.6 wt% nanofiller composite at low frequency, indicating enhanced dielectric efficiency and reduced energy dissipation. The capacitors' functionality was assessed through capacitance-frequency and conductance-frequency analyses. The capacitors exhibited stable high capacitance across a broad frequency spectrum, making them alternatives for energy storage solutions.