This paper presents the in‐situ chemical synthesis of silver nanoparticles (AgNPs) with glycerol embedded in poly(vinyl alcohol) (PVA) to synthesize (PVA/AgNPs) polymer nanocomposites with different volume percentages of AgNPs (2, 4, and 6) %v/v. X‐ray diffractometer shows the (200) plane of AgNPs, which appeared at 44.82° in PVA/(2, 4, and 6) %v/v AgNPs films. However, the (111), (220), and (311) planes at 2θ (37.55°, 65.08°, and 77.45°) respectively appeared in PVA with 6%v/v AgNPs only. Fourier transform infrared spectroscopy spectrum of AgNPs shows a COC peak at 1273 cm−1 which is attributed to the stronger affinity of AgNPs on the COC bonds in the PVA matrix. The scanning electron microscope confirmed that all nanoparticles are open‐spherical or near‐spherical in shape. Differential scanning calorimetry shows the decrease in glass transition and melting temperature of pure PVA from 64.62° and 185.54° to 53.09° and 182.35° after the incorporation of AgNPs. Thermogravimetric analysis shows the reduction of thermal stability of PVA/AgNPs films when compared to pure PVA. The electrical conductivity of PVA/AgNPs films increased with the addition of AgNPs. From Mechanical studies, the values of Young's modulus, yield strength, and ultimate tensile strength decreased with increasing AgNPs volume percentage.