The present study discloses the evolution of bioactivity with improved chemical stability in the composite lm of polyvinyl alcohol (PVA) and sweet lime peel (SLP) powder along with biodegradability and improved hardness due to the structural miscibility between constituents polymer during solution blending. The evolved structure, properties, bioactivity, and synergistic effect between PVA and SLP were established with the help of spectrochemical results, morphological results, and physio-mechanical properties i.e. thickness, chemical stability, water vapor transmission rate, heat seal-ability, and shelf-life.The result reveals the better preservation of the bioactive compound of SLP by 200%, antimicrobial nature against S. aureus and E. coli, improved tensile strength, and heat stability in the lm. Further, the prepared lm of SLP with optimum properties and 0.12 mm thickness was used for packing of sprouts as an alternative to currently used non-biodegradable lm with comparable life span for seven days.