This study employed the sol gel auto-combustion approach to synthesize Mg0.5Ni0.5Fe2O4 spinel ferrite nanoparticles. Additionally, the casting method was used to fabricate Mg0.5Ni0.5Fe2O4/PMMA nanocomposite polymer films. The structural properties were analyzed by the utilization of x-ray diffraction pattern (XRD), high resolution transmission electron microscope (HRTEM), and field emission scanning electron microscope (FESEM). The UV-visible spectrophotometer examination was used to evaluate the optical properties of the produced nanocomposite films, such as absorbance, transmittance, indirect energy band gap, Urbach energy, excitation coefficient, and refractive index. Two indirect optical energy gaps are calculated, whereas they decreased from 4.56 eV to 4.33 eV, and from 4.04 eV to 3.01 eV, while the Urbach energy increased from 0.304 eV to 0.524 eV as the nanofillers increased from 0 to 4 wt%. An investigation was conducted to examine the impact of nanoparticle doping on the dielectric constant, electric modulus, and ac conductivity. The Mg0.5Ni0.5Fe2O4/PMMA nanocomposite films demonstrate higher permittivity and ac conductivity and a lower dissipation factor and electric modulus compared to pure PMMA. The dielectric permittivity (ε′) increased from 2.76 to 3.43 at a constant frequency 100 Hz up to 2 wt.% of Mg0.5Ni0.5Fe2O4 then decreased to 2.41 while the dissipation factor tan(δ) decreased from 0.1 to 0.046 at the same frequency. The nanocomposite films are well-suited for utilization in CUT-OFF selective laser filters, solar cells, energy storage devices, and other applications in related industries.