In this study, the effect of gamma irradiation on the optical properties of thin films of polymer electrolytes was investigated. The thin films were composed of poly(ethylene oxide) (PEO) doped with different concentrations of potassium iodide (KI) salt. The optical absorption spectrum of each film was measured using a UV–Vis spectrophotometer over a range of 300 to 800 nm. The PEO thin-film samples were subjected to gamma irradiation at two different doses of 100 and 200 Gy generated by a Co-60 source. It was found that the optical properties of the thin films were significantly influenced by the KI dopant concentration and gamma irradiation. Increasing both the KI concentration and the gamma irradiation dose resulted in a reduction in the energy gap and an increase in the absorption coefficient, extinction coefficient, refractive index, and dielectric constant of the PEO electrolyte. These findings have potential applications in the optimization of polymers for use in optical devices and energy storage systems.