Despite the vast availability and potential for use in biomaterials, application of xylan is highly restricted due to their hygroscopic nature and low mechanical strength. In this work, the xylan (Xy) from hot water extract of bagasse was successfully valorized by integration with carboxymethyl cellulose (CMC), oxidized carboxymethyl cellulose (OCMC) and cellulose nanofibers (CNFs). This work was conducted to blend different ratios of xylan, CMC, OCMC and CNF to provide compact bio-composite films with multi-functional characteristics. Xylan was isolated by using hot water treatment from bagasse, and OCMC was provided from selective oxidation of CMC with sodium periodate. The FTIR and XRD results confirmed the introduction of hydrogen bonding and electrostatic interaction in prepared bio-composite films. The tensile strength of the blended films improved by incorporation of the Xy-CMC with OCMC and CNF, and the WVP of the bio-composite films decreased. The maximum value of achieved tensile strength was 30 and 32 MPa for Xy-CMC/OCMC (codes A1–A8) and Xy-CMC/CNF (codes B1–B8), respectively. The thermal stability of bio-composite films had been improved compared to the neat xylan films. The overall results advised that the blended films potentially could be used in the coating and packaging applications. Preparation of xylan bio-composite films reinforced with oxidized carboxymethyl cellulose and nanocellulose.