This study involves the fabrication of innovative poly (vinyl alcohol) nanocomposite films by incorporating silver-embedded clay nanotubes with organosolv-lignin by the solution casting approach. The confirmation of this procedure was achieved through the utilisation of many techniques, including FTIR, PXRD, FE-SEM, and TGA. The aforementioned research have verified the adherence of silver nanoparticles to the surface of raw halloysites. The confirmation of lignin functionalization on these nanotubes has been established. This novel nanofiller was used to make a range of nanocomposite films with varying weight percentages ranging from 0 wt% to 5 wt%. With the increase in the wt% of nanofillers, These nanocomposite films exhibited greater thermal and mechanical stability compared to plain PVA. An investigation was conducted to examine the impact of the films on the cellular behaviour of murine fibroblast (NIH3T3) cell lines. Based on the findings from cell proliferation and scratch testing, it has been determined that these nanocomposite films are not harmful to cells, exhibit a greater rate of cell multiplication (116 ± 1.19), and demonstrate increased migratory capabilities (86.5 ± 0.50). Further investigations of human blood corroborate the evidence that these films are compatible with blood. Nanocomposite films have the potential to serve as wound healers following pre-clinical and clinical testing.