Polyvinyl alcohol (PVA) films are widely used in industry, but they have limitations in mechanical strength, UV‐blocking, and antibacterial performance. This research addresses these challenges by integrating kraft lignin (KL) derivative and cellulose fibers (CFs) into PVA films. The results confirmed that KL enhanced UV blocking and hydrophobicity, but it reduced porosity and water absorption. Cationic KL (CKL) further improved UV‐blocking, hydrophilicity, antibacterial properties, and decreased oxygen permeability of the films. CF in PVA enhanced UV‐blocking and mechanical properties. It also improved hydrophilicity, aiding water absorption in lignin‐containing PVA films. CF also increased Young's modulus, oxygen permeability, and antibacterial properties. A 5 wt.% concentration of CF significantly enhanced oxygen barrier properties and mechanical strength, even though it reduced UV‐blocking. These findings highlighted the positive impact of lignin and cellulose derivatives in PVA films. However, due to high water absorption, these films may not be suitable for food packaging requiring moisture resistance.