The stretchable electrodes with excellent flexibility, electrical conductivity, and mechanical durability are the most fundamental components in the emerging and exciting field of flexible electronics. This article proposes a method for fabrication of such a stretchable electrode by embedding silver nanorods (AgNRs) into a polydimethylsiloxane (PDMS) matrix that is grown by a unique glancing angle deposition technique. The surface, mechanical, and electrical properties of PDMS are significantly changed after embedding the AgNRs in it. The results show that surface roughness and polarity increase after AgNRs are embedded in the PDMS matrix. Elastic modulus (E) and hardness (H) decrease with an increase in the indentation load as a result of the indentation depth effect. Due to strong interfacial adhesion of AgNRs embedded in the PDMS matrix, the E and H of nanocomposite are increased by 167.6 and 93.3% compared with PDMS film, respectively. Furthermore, the AgNRs-PDMS film has an electrical resistivity value in the order of 10 −7 Ωm. It remains conductive during various mechanical strains such as bending, twisting, and stretching, which is demonstrated using a light-emitting diode circuit. Simultaneously, the antimicrobial activity of silver could make it a promising candidate for wearable electronics.