Chitosan-methyl cellulose based films which incorporatate vanillin as an antimicrobial agent and polyethylene glycol 400 (PEG) as a plasticizer were developed in this study. The effects of vanillin and plasticizer concentration on mechanical, barrier, optical, and thermal properties of chitosan-methyl cellulose film were evaluated. When the vanillin concentration was increased at a given PEG level, film flexibility decreased while tensile strength increased slightly. Vanillin increased the barrier to oxygen but not water vapor. Increasing vanillin content resulted in less transparency and a more yellowish tint. The bulky nature of vanillin reduced film crystallization. When PEG concentration was increased at a given vanillin level, it resulted in greater film flexibility but reduced film strength. Water vapor permeability (WVP) and oxygen permeability (OP) increased with increase in PEG content. PEG contributed less to the opacity, yellowness, and crystallization of the film than did vanillin. (c) 2008 Wiley Periodicals, Inc.