Poly(butylene adipate-co-terephthalate) (PBAT) composites containing silver-silica (Ag-SiO2) were prepared using an in-situ sol-gel process. Maleic anhydride-grafted PBAT (PBAT-g-MA) and multihydroxyl-functionalized Ag-SiO2 were used to improve the compatibility and dispersibility of Ag-SiO2 within the PBAT matrix. The composites were characterized morphologically using transmission electron microscopy and chemically using Fourier transform infrared spectrometry. The existence of Ag-SiO2 nanoparticles on the substrate was confirmed by the ultraviolet-visible absorption spectra. The antibacterial and antistatic properties of the composites were evaluated whether SiO2 enhanced the electrical conductivity was tested as well as whether Ag enhanced the antibacterial activity of the PBAT-g-MA/SiO2 or PBAT/SiO2 composites. The PBAT-g-MA/SiO2 or PBAT/SiO2 composite that contained Ag had better antibacterial activity (more than 1.3-fold). The functionalized PBAT-g-MA/Ag-SiO2 composite can markedly enhanced antibacterial and antistatic properties due to the carboxyl groups of maleic anhydride, which acted as coordination sites for the Ag-SiO2 phase, allowing the formation of stronger chemical bonds. (C) 2011 Wiley Periodicals, Inc. J Appl Polym Sci 121: 2193-2201, 2011