Kappa-carrageenan (KC) is one of the most interesting biopolymers that is composed of a linear chain of sulfated galactans and extracted from red seaweed, Kappaphycus alvarezii. It shows good potential for development as a source of biodegradable or edible films. However, KC films do not have good water vapor barrier properties, as they are intrinsically hydrophilic. Palmitic acid (PA) as hydrophobic material was incorporated into semi-refined kappa-carrageenan (SRKC) edible films in order to improve water vapor barrier properties. In this study, composite films based on SRKC incorporating PA were prepared and their applications on minimally processed chicken breast fillet were evaluated. Composite SRKC-based films with varying concentrations of PA (5%, 10%, and 15% w/w) were obtained by a solvent casting method. Their mechanical and barrier properties were investigated. Results showed that the incorporation of PA in films caused an increase in thickness, but decrease in water vapor transmission rate (WVTR) as the concentration of PA increased (from 5% to 15% w/w). Composite SRKC-based edible film incorporating 15% w/w of PA presented better water vapor barrier properties as compared to other films with 5% and 10% w/w PA incorporation. Thus, formulation containing 15% w/w PA was used as a wrapping material for film application on minimally processed chicken breast fillet. The application results showed that the incorporation of PA in film caused an effect (p < 0.05) on preventing of weight loss significantly compare to control (non-wrapping), however it did not significantly (p >0.05) change the color of minimally processed chicken breast fillet.