To tackle the persistent global issue of non‐biodegradable petro‐plastics, this study undertook the challenge of developing environmentally sustainable and active packaging alternatives. The approach involved preparing composite films by blending poly(hydroxybutyrate) (PHB) and poly(lactic acid) (PLA) while integrating olive oil and zinc oxide to augment their effectiveness. The films were fabricated by mixing different concentrations of ZnO (ranging from 0.5 – 2.5%) and 10% olive oil into the PHB/PLA (70/30) matrix using solvent‐casting. A comprehensive analysis was conducted to assess the properties of the prepared films, including Fourier transform infrared spectroscopy (FTIR), Scanning electron microscopy (SEM), Thermogravimetric analysis (TGA), X‐ray diffraction (XRD), Mechanical testing, water vapor permeability, and UV‐blocking properties. Among the tested samples, the film containing 1.5% ZnO (referred to as PPOZ1.5) displayed the highest tensile strength at 30.8 MPa along with improved water vapor permeability. Consequently, PPOZ1.5 film was selected for further investigations which included DPPH radical scavenging activity, and antimicrobial potential. PPOZ1.5 film exhibited exceptional antioxidant activity (>65%) and demonstrated significant antimicrobial efficacy against Escherichia coli, Staphylococcus aureus, and Aspergillus niger. Moreover, when utilized to package bread samples, PPOZ1.5 film effectively inhibited microbial growth, ensuring food safety for an extended storage period of more than 12 days, ultimately contributing to the preservation and safety of packaged bakery products.This article is protected by copyright. All rights reserved