Aims: This research was conducted to develop and characterize polyvinyl alcohol (PVA)/montmorillonite (MONT) clay incorporated with carvacrol (Carva) nanocomposite film as a potential material in wound dressing. Methodology and results: Organophilic MONT clay, which was initially modified from commercial MONT clay by cetyltrimethylammonium bromide (CTAB), was used in the polymerization process using PVA. The synthesized nanocomposites were visualized via transmission electron microscopy (TEM). The developed film (PVA/MONT/Carva nanocomposite film) was characterized via Fourier transform infrared (FTIR). The investigation on mechanical property and antimicrobial activity of the film was also performed. All nanocomposites are spherical, with a size of 92.8 ± 22.1 nm. The -OH stretch, C-H stretch, aromatic group, SiO stretch, and C-O from acetyl group were identified in the PVA/MONT/Carva nanocomposite films. During the chemical release test, carvacrol attained a plateau at 24 h, with a total release of 62.3%. This nanocomposite exhibited a severe detrimental influence on the growth of Gram-bacteria and yeasts, which represented a broad spectrum of antimicrobial agents. All test microorganisms showed approximately up to 82% reduction of microbial growth during the Hohenstein challenge test. Physically, the nanocomposite films were yellowish and apparent. The film was sturdy, flexible, elastic and consisted of excellent water holding capacity. Conclusion, significance and impact of study: PVA/MONT/Carva nanocomposite film may have a useful potential to be merged in the pharmaceutical application, especially in wound dressing production.