This work focuses on studying the preparation, characterization (physical, mechanical, optical, and morphological properties as well as antioxidant and antimicrobial activities) and packaging application of chitosan (CH)-based gel films containing varying empty green pea pod extract (EPPE) concentrations (0, 1, 3, and 5% w/w). The experiments revealed that adding EPPE to CH increased the thickness (from 0.132 ± 0.08 to 0.216 ± 0.08 mm), density (from 1.13 ± 0.02 to 1.94 ± 0.02 g/cm3), and opacity (from 0.71 ± 0.02 to 1.23 ± 0.04), while decreasing the water vapour permeability, water solubility, oil absorption ratio, and whiteness index from 2.34 to 1.08 × 10−10 g−1 s−1 pa−1, from 29.40 ± 1.23 to 18.75 ± 1.94%, from 0.31 ± 0.006 to 0.08 ± 0.001%, and from 88.10 ± 0.43 to 77.53 ± 0.48, respectively. The EPPE films had better tensile strength (maximum of 26.87 ± 1.38 MPa), elongation percentage (maximum of 58.64 ± 3.00%), biodegradability (maximum of 48.61% after 3 weeks), and migration percentages than the pure CH-gel film. With the addition of EPPE, the antioxidant and antibacterial activity of the film improved. SEM revealed that as EPPE concentration increased, agglomerates formed within the films. Moreover, compared to control samples, packing corn oil in CH-based EPPE gel films slowed the rise of thiobarbituric acid and peroxide values. As an industrial application, CH-based EPPE films have the potential to be beneficial in food packaging.