SummaryThis study investigates the development of Poly‐vinyl alcohol (PVA) and essential oil‐based biocomposite films incorporating halloysite nanotubes (HNT) and cellulose nanocrystals (CNC) as reinforcement materials for the packaging of papaya fruits to extend their postharvest shelf‐life. The fabrication process involves the dispersion of filler materials within the PVA polymer matrix, followed by the casting of the films using the solvent‐evaporation technique. The CNC isolated from the papaya peel exhibited rod‐like structures that were confirmed in the morphological studies. The films reinforced with HNT and CNC (5 wt%) had enhanced mechanical properties and exhibited a tensile strength of ~64.40 MPa. The findings of the study demonstrate that the fruits packed with biocomposite materials containing HNTs and CNCs as reinforcements and lemongrass essential oil as active material showed better performance when compared to the control. The edible quality and the storage life of the papaya fruits (TSS, firmness and weight loss %) under investigation, were extended by 14 days at ambient temperature (25 ± 2 °C) and relative humidity (80 – 85 %), thus improving the postharvest shelf‐life of harvested papayas. Therefore, PVA‐based active packaging film prepared with lemongrass essential oil, HNTs and CNCs has great potential for the preservation of papaya during postharvest storage.