We prepared a nanocomposite (NC) containing polyaniline (PANI) and silver (Ag) nanoparticles (NPs). The aniline monomer was polymerized in the presence of Ag+ ions as an oxidizing agent. Samples from the prepared Ag-PANI NC film were irradiated with gamma rays (γ) radiation doses (5 − 60 kGy). The γ ray induced modifications in the prepared Ag-PANI NC optical properties are illustrated. The induced effect was explored using UV-vis spectroscopy and the International Commission on Illumination (CIE) color changes technique. A detailed study of the optical bandgap (Eg) was carried out. The results indicated that the direct Eg decreased from 2.41 to 1.94 eV with increasing γ irradiation. We attribute this decrease to the dominance of crosslinking that damaged the ordered structure and thus increased the amorphous regions. Furthermore, the study of Eg highlighted that the optical dielectric loss (ε”) parameter is a useful tool to specify the type of electronic transitions which was found to be a direct allowed transition for the Ag-PANI NC samples. Finally, the color changes between the pristine and irradiated samples were characterized. The pristine Ag-PANI film exhibited significant color changes during the irradiation.