The present study was focused on the effect of shellac as a natural polymer on the mechanical, physical, and antimicrobial properties of the paper sheets. The surface modification of paper sheets was carried out using different shellac solutions. The capability of the treated sheet to absorb water and to permit air follow was studied by Cobb test and air permeability, respectively. It was found that the treated sheet had little affinity for water and low air permeability. The change of sheet surface properties after modification was ascertained by scanning electron microscopy and Fourier Transform Infrared Spectrophotometer (FT-IR). The shellac treated paper sheet displayed improved mechanical properties when compared with untreated paper sheet. The shellac treated sheets exhibit efficient antimicrobial activity against Staphylococcus aureus, Pseudomonas aeruginosa, and Candida albicans. Consequently, the prepared paper sheet can be used as novel materials for packaging applications.