Poly(butylene adipate-co-terephthalate) (PBAT) is popular because of its low cost, biodegradability, good processing properties, flexibility, and mechanical features. In this study, we explore the potential of PBAT-based bioplastics by adding AgVO3 nanorods with PBAT to reduce costs. We produced nanocomposite films of PBAT reinforced with 1, 3, and 5 wt% of AgVO3 nanorods using solvent casting. The inclusion of AgVO3 in the structure of PBAT was investigated through Fourier transform infrared spectroscopy, x-ray diffraction, and scanning electron microscopy. The nanocomposite films demonstrate excellent properties, surpassing those of single-component blends, enhancing mechanical properties, and improving the barrier properties of nanocomposite films. The water vapor transmission rate of AgVO3 reinforced (5 wt%) nanocomposite films improved by 42.45% compared to pure PBAT films. The tensile strength of the PBA-3 film was 37.19 MPa, exhibiting higher strength than the films produced from clean PBAT (19.73 MPa). The AgVO3-reinforced films demonstrated increased resistance to moisture and water, as indicated by their higher water contact angle values (88.04°). Food-borne bacteria like Staphylococcus aureus and Escherichia coli have been stable to the antibacterial activity of the nanocomposites on the addition of AgVO3. The potential applications of these nanocomposite films in food packaging are promising, offering a sustainable and effective solution to food preservation. Highlights: The AgVO3-filled poly(butylene adipate-co-terephthalate) (PBAT) nanocomposite films exhibit superior mechanical, barrier, and resistance to moisture and water compared to neat PBAT films. The water vapor transmission rate of the film is significantly enhanced, with a 42.45% enhancement in films reinforced with 5 wt% AgVO3. AgVO3-filled PBAT nanocomposites demonstrate effective antibacterial activity against Escherichia coli and Staphylococcus aureus. © 2024 Elsevier B.V., All rights reserved.