In contrast to conventional drug delivery systems, controlled drug release systems employ distinct methodologies. These systems facilitate the release of active substances in predetermined quantities and for specified durations. Polymer hydrogels have gained prominence in controlled drug delivery because of their unique swelling–shrinkage behavior and ability to regulate drug release. In this investigation, films with a hydrogel structure were crafted using polyvinyl alcohol, a biocompatible polymer, and silver nanoparticles. Following characterization, ibuprofen was loaded into the hydrogels to evaluate their drug release capacity. The particle sizes of silver nanoparticles synthesized using a green approach were determined. This study comprehensively examined the structural properties, morphological features, mechanical strength, and cumulative release patterns of the prepared films. In vitro cytotoxicity analysis was employed to assess the cell viability of drug-loaded hydrogel films, and their antibacterial effects were examined. The results indicated that hydrogel films containing 5% and 10% polyvinyl alcohol released 89% and 97% of the loaded drug, respectively, by day 14. The release kinetics fits the Korsmeyer–Peppas model. This study, which describes nanoparticle-enhanced polyvinyl alcohol hydrogel systems prepared through a cost-effective and environmentally friendly approach, is anticipated to contribute to the existing literature and serve as a foundational study for future research.