In recent studies, researchers have been dedicated to the synthesis of silver nanoparticles (AgNPs) that can be adjusted in size, owing to their unique physical and chemical properties. In this study, AgNPs with well‐defined and stable characteristics are successfully functionalized with Gallic acid (GA) within a polymer matrix consisting of polyvinyl alcohol/β‐cyclodextrin polymeric biofilms (BFs) using a casting approach. To evaluate the particle size, functional groups, and crystallinity of the AgNPs, various techniques including UV, FT‐IR, TEM, and XRD are employed. The prepared BF films (BFs) are comprehensively analyzed for mechanical strength, color ratio, swelling ratio, surface morphology, elemental ratio, thermal behavior, and water wettability using stress–strain analysis, spectrophotometer color lab, SEM, EDAX, TGA, and contact angle techniques. Furthermore, the antimicrobial properties of the BFs are also investigated, along with their antioxidant activity assessed through the DPPH radical assay. The multifunctional BFs exhibited promising potential as antimicrobial agents for food preservation.