Ternary composite films of poly(vinyl alcohol) (PVA), boric acid (BA), and detonation nanodiamond (DND) were prepared by aqueous solution method. Because of its excellent mechanical/thermal properties and low friction coefficient, DND is expected to offer PVA film superior performance if the puzzles of particle agglomeration in polymer matrix and fragile interface reaction between DND and PVA can be settled. BA was used as a crosslinking agent to form a strong network structure between DND and PVA. Investigation on microstructure of PVA/BA/DND films and bonding mechanisms therein shows that BA, DND, and PVA may crosslink by oxo‐bridges owing to the interaction of hydroxyl groups. The Young's modulus (E) of composite films was enhanced by nearly 3.3 times with only 0.8 wt % DND loading, and the antiwear, thermal stability, and waterproof properties can be significantly improved after the crosslinking. Meanwhile, the transparency of composite films can be well preserved even with large DND content. © 2017 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2017, 134, 45449.