This study investigates the potential of incorporating CuO and Al nanoplates into a polyvinyl chloride (PVC) matrix to enhance the performance of medium voltage cables. The incorporation of nanoparticles into the PVC insulation material aims to improve the electrical, dielectric, and optical properties of the cable. The nanocomposite films were synthesized by dissolving PVC in tetrahydrofuran (THF) solvent and adding a mixture of 5 wt% CuO and Al nanoparticles. Fourier-transform infrared spectroscopy (FTIR) analysis confirmed the successful incorporation of the nanoparticles into the PVC matrix. The optical properties of the PVC/AlNPs and PVC/CuONPs + AlNPs nanocomposite films were characterized, revealing a decrease in band gap energy (4.35 eV) and Urbach tail energy (0.3702 eV) for the PVC/CuONPs + AlNPs film compared to the PVC/AlNPs film (4.5 eV and 0.41816 eV, respectively). Additionally, the PVC/CuONPs + AlNPs film exhibited higher absorption coefficients and increased electron delocalization and conjugation (carbon cluster value of 62.53). The dielectric properties of the CuONPs + AlNPs nanocomposites were investigated, with the sample containing 1.5% AlNPs demonstrating the highest AC conductivity (2.029 × 10−3 S/m), dielectric constant, and dielectric loss across the frequency range. Simulations of electric field distribution revealed that the PVC/CuONPs+1.5% AlNPs nanocomposite cable exhibited a more uniform electric field distribution compared to the PVC market cable, contributing to a reduction in electrostatic tension and a relative permittivity increase from 2.25 to 2.35. The electric potential distribution along the cable radius remained similar for both cable samples. These findings demonstrate the potential of nanocomposite insulation materials in enhancing the performance of medium voltage cables, paving the way for improved reliability, longevity, and efficiency.