This study involved the fabrication of poly (vinyl alcohol) (PVA) nanocomposite films using the solution-casting process, which incorporated strontium-coated silver oxide (Sr-AgO) nanoparticles generated by a plant-extract assisted method. Various characterization techniques, such as XRD, SEM, TEM, UV, and FTIR, showed the formation and uniform distribution of Sr-AgO nanoparticles in the PVA film, which are biocompatible nanocomposite films. The presence of hydroxyl groups leads to appreciable mixing and interaction between the Sr-AgO nanoparticles and the PVA polymer. Mechanical and thermal results suggest enhanced tensile strength and increased thermal stability. In addition, the sample of PVA/Sr-AgO (1.94/0.06 wt. ratio) nanocomposite film showed decreased hydrophilicity, lower hemolysis, non-toxicity, and appreciable cell migration activity, with nearly 19.95% cell migration compared to the standard drug, and the presence of Sr-AgO nanoparticles favored the adhesion and spreading of cells, which triggered the reduction in the gaps. These research findings suggest that PVA/Sr-AgO nanocomposite films with good mechanical, antimicrobial, non-toxic, and biocompatible properties could be applied in biological wound-healing applications.