Cobalt oxide nanoparticles (NPs) are highly consistent dispersed into the blend polymers rather than other NPs. Also, the ability of polyvinyl alcohol‐polyethylene glycol (PVA‐PEG) to form homogenous blend attained it essential characteristics that allow it to be suitable candidate for numerous industrial applications. Thus in the present work, Co3O4 nano‐oxide, was synthesized by the sol‐gel procedure and PVA‐PEG/Co3O4 nanocomposite NCP films were synthesized by the casting technique. Samples from the synthesized NCP were exposed to γ doses between 20 and 230 kGy. The induced alterations in the synthesized NCP due to gamma irradiation have been illustrated using X‐ray diffraction (XRD), thermogravimetric analysis (TGA), differential thermal analysis (DTA), Fourier transform infrared (FTIR), and UV spectroscopes. Further, Color divergence between the blank and the irradiated films has been estimated. Gamma doses between 60 and 230 kGy lead to the prevalence of intermolecular crosslinking, which enhances the disordered phase. This is reflected in a rise in the degradation temperature values from 225°C to 236°C indicating an improvement in the thermostability of the NCP samples. Moreover, the γ‐radiation induces defects that split the ordered portion, reducing Tm from 238°C to 229°C. In addition, the band gap decreases from 5.24 to 4.61 eV with increasing the γ doses to 230 kGy, signifying disorder character. Finally, the NCP samples showed a color change by γ radiation, as ΔE raised with increasing dose. The resultant improvements in the optical properties of the NCP samples allow it to be used in optoelectronic and dosimetric applications.