Different composite films of cobalt chloride (CoCl 2) embedded in a blend of (poly vinyl alcohol (PVA) /poly ethylene glycol (PEG) 72/28 wt. %) were prepared by the solution casting technique. Fourier Transform infrared (FT-IR) spectroscopy was used to identify the effect of CoCl 2 on the characteristic functional groups of both PVA and PEG. A shift in the absorption edge of the pure blend was observed by adding CoCl 2 which indicates a decrease in the energy gap (E g) values based on the CoCl 2 content. By increasing the content of CoCl 2 , the refractive index, the Urbach energy, the dispersion parameters, the moments of the optical spectrum and the static dielectric constants show a reduction in their values compared to those of the pure blend. The oscillator energy gap E o equals about 2.23 E g , for the different composites. The calculated values of the penetration depth, for all the composites, exhibit an increase by increasing the wavelength whereas they decrease in the region of the absorption band of the CoCl 2 from 420 nm to 750 nm depending on the CoCl 2 content. The optical conductivity of the composites has been increased in the region of the absorption band of the CoCl 2 .