Polymer nanocomposite films had been fabricated by the solution casting process using the organic matrix of polyethylene oxide/polyvinylpyrrolidone (PEO/PVP: 50/50 wt%) blend and various filling levels of lithium titanium oxide nanoparticles (Li4Ti5O12 NPs). The TEM and XRD techniques indicated the phase purity of the cubic Li4Ti5O12 NPs with a crystallite size of about 69 nm. The FTIR spectra revealed that the complexation/miscibility between the PEO/PVP blend components were existed through the formation hydrogen bonding between the main functional groups of these polymers and also the loaded NPs fundamentally behaved as geometrical incarceration for the structure of PEO/PVP matrix, due to the formation of polymer-nanoparticles interactions. The SEM images indicated observable variations in the size of PEO spherulites, formed aggregations and pores of host matrix on 1 wt% Li4Ti5O12 NPs and additional 3 and 5 wt%. The optical features of nanocomposites such as optical energy band gap and refractive index were evaluated through the UV/vis. absorbance spectra, where the redshift for the main absorption edge of the filled films implied that Li4Ti5O12 NPs had been successfully embedded into the PEO/PVP matrix. The maximum refractive index and the lowest optical bandgap energy were obtained for the nanocomposite sample (5 wt%). The AC electrical conductivity σac and the dielectric response of the prepared samples were studied, where the loaded NPs increased the values of σac, dielectric loss, and dielectric constant of the PEO/PVP blend and the dielectric constant of the nanocomposite films decreased with increasing the applied frequency. The electrical modulus formalism (M*) and impedance formalism (Z*) were used to analyze the impedance data. The enhancements in the optical and electrical characteristics make these nanocomposite materials appropriate for many uses such as integral thin film capacitors, flexible nanodielectrics for organoelectronic devices, high power Li-ion batteries, optical band gap tuner and many optoelectronic devices.