Films of polyethylene oxide and sodium alginate polymer blend (50/50 wt%) embedded with different quantities of Au nanoparticles with size 3-32 nm were made using the casting process. The nanocomposite films were examined by XRD analysis, FT-IR spectroscopy, TEM, UV/vis spectroscopy, and AC conductivity and dielectric parameter measurements. The XRD spectra revealed the amorphous nature of the prepared films (PEO/SA-Au NPs). From the Fourier transform infrared spectra it can be seem that the intensity of the FT-IR bands decreased which depicted the existence of the interaction between (PEO/SA) virgin polymer and gold nanoparticles. The TEM micrographs showed a cubic-structure for Au NPs with an average size of 15-20 nm. The optical properties of the polymer composite were examined by ultraviolet-visible techniques. In a direct transition the optical energy gap ( ) of the prepared films is decreased from 4.73 to 2.92 eV and in an indirect transition decreased from 2.95 to 1.50 eV. The dielectric and electrical spectra of the obtained films were examined dielectric broad-band spectroscopy. The electrical and dielectric measurements are appropriate for the use of the polymer nanocomposite films in the fabrication of electroactive materials.