AbstractHither‐to‐unknown one‐pot method for the synthesis and stabilization of silver nanoparticles (AgNPs) from silver nitrate (AgNO3) through uncross‐linked and cross‐linked polyvinyl alcohol/methyl cellulose (PVA/MC) blend using solution casting method is discussed in detail. The formed films were characterized by fourier transform infrared spectroscopy (FTIR), scanning electron microscopy with energy dispersive X‐ray spectroscopy (SEM‐EDX), transmission electron microscopy (TEM) and analyzed for its physical, mechanical, biodegradable and antibacterial properties (particle size, water vapour transmission rate, water contact angle, thermogravimetric analysis (TGA), UV‐Vis spectroscopy and migration). SEM and TEM results indicated that the formation of silver nanoparticles are spherical in shape as well as nano in size. FTIR spectroscopic analysis indicates the existence of hydrogen bonds in cross‐linked blend and complex of silver (Ag) in uncross‐linked blend. Further, enhanced mechanical, water barrier, and thermal properties are observed for the films containing AgNPs. Antibacterial test by disc diffusion method showed that, uncross‐linked and cross‐linked blend with AgNPs have more inhibition (mm) against L. Monocytogenes (10.33), Klebsiella (9.67) (Gram‐positive) and Salmonella (9.33), E. Coli (8.33) (Gram‐negative) strains respectively. Migration studies demonstrated that the developed films could be suitable for fatty food packaging.