In order to potentiate implementations in optical energy applications, flexible polymer composite films comprising methyl cellulose (MC), polyaniline (PANI) and silver nanoparticles (AgNPs) were successfully fabricated through a solution cast preparation method. The composite structure of the fabricated film was confirmed by X-ray diffraction and infrared spectroscopy, indicating a successful incorporation of AgNPs into the MC/PANI blend. The optical parameters such as band gap (Eg), absorption edge (Ed), number of carbon cluster (N) and Urbach energy (Eu) of pure MC polymer, MC/PANI blend and MC/PANI/Ag film were determined by using the UV optical absorbance in the wavelength range 200 to 110 nm. The influence of AgNPs and PANI on linear optical (LO) and nonlinear optical (NLO )parameters such as reflection extinction coefficient, refractive index, dielectric constant, nonlinear refractive index and nonlinear susceptibility of MC polymer were also investigated. The results showed a decrease in the band gap of MC/PANI/AgNPs compared to the pure MC film. Meanwhile, the estimated carbon cluster number enhanced with the incorporation of the AgNPs. The addition of AgNPs and PANI also improved the optical parameters of MC polymer, a trait that makes the current composite a convenient material for optical energy applications.