In order to potentiate implementations in optical energy applications, flexible polymer composite films comprising methyl cellulose (MC), polyaniline (PANI) and silver nanoparticles (AgNPs) were successfully fabricated through a cast preparation method. The composite structure of the fabricated film was confirmed by X-ray diffraction and infrared spectroscopy, indicating a successful incorporation of AgNPs into the MC/PANI blend. The scanning electron microscope (SEM) images have indicated a homogenous loading and dispersion of AgNPs into the MC/PANI blend. The optical parameters such as band gap (Eg), absorption edge (Ed), number of carbon cluster (N) and Urbach energy (Eu) of pure MC polymer, MC/PANI blend and MC/PANI/Ag films were determined using the UV optical absorbance. The effects of AgNPs and PANI on MC polymer linear optical (LO) and nonlinear optical (NLO) parameters including reflection extinction coefficient, refractive index, dielectric constant, nonlinear refractive index, and nonlinear susceptibility are studied. The results showed a decrease in the band gap of MC/PANI/AgNPs compared to the pure MC film. Meanwhile, the estimated carbon cluster number enhanced with the incorporation of the AgNPs. The inclusion of AgNPs and PANI has enhanced the optical properties of the MC polymer, providing a new composite suitable for energy conversion systems, solar cells, biosensors, and nonlinear optical applications.