Herein the optical properties of Hydroxypropylmethyl cellulose/Potassium iodide (HPMC/KI) composite films were determined. Casting technique was introduced to make HPMC/KI films with different KI salt concentrations (0.1–1) wt%. The absorbance model was used to determine parameters like absorption edge, refractive index, real and imaginary sections of dielectric function, extinction coefficient, Urbach energy, band gap and optical conductivity in the spectral range 200–800 nm. As shown by study, KI salt doping affects the optical properties of HPMC. The absorption edge (\({E}_{e}\)) was widely displaced towards a region of lower photonic energy. For the 1 wt% KI/HPMC film, the direct and indirect optical bandwidth gaps of pure HPMC were reduced from 5.6 eV to 2.56 eV and 5.86 to 2.5 eV respectively. The optical dielectric loss method was effectively employed as an alternate method for estimating the optical bandgap. In addition, the Tauc’s extrapolation method identified the kind of electronic transition. The variation of optical energy band gap and dielectric constant based on KI salt concentration was used to investigate the credibility of the Penn’s model. In salt-composite films, an increase in Urbach energy and optical conductivity were observed which may be evidence of large shift from tail-to-tail and band to tail. Meanwhile, X-ray diffraction (XRD) examination revealed that the KI salts damaged the HPMC polymer's crystalline phase. Lastly, the films were also subjected to Fourier transform infrared spectroscopy (FTIR). The considerable variation in transmittance and band change in FTIR spectra was exposed for doped films.