Nano zinc oxide at different concentrations (0.1, 0.3 and 0.5%) and neem essential oil were incorporated into the chitosan polymer by solution cast method to enhance the properties of the bionanocomposite film. The functional groups, crystalline particle size, thermal stability and morphology were determined using FTIR, XRD, TGA and SEM, respectively. The results showed that 0.5% nano zinc oxide incorporated composite film have improved tensile strength, elongation, film thickness, film transparency and decreased water solubility, swelling and barrier properties due to the presence of neem oil and nano zinc oxide in the polymer matrix. Further antibacterial activity by well diffusion assay method was followed against Escherichia coli which were found to have good inhibition effect. In addition to this food quality application were carried against carrot and compared with the commercial film.