In the present work, flexible composite films consist of PVP (Polyvinyl pyrrolidone), PVAL (Polyvinyl alcohol), and silver nitrate (AgNO3) were easily fabricated via a cast synthesis method for optical energy uses. The composite structure was analyzed via XRD (X-Ray Diffraction) and IR spectroscopy. They indicated the successful interaction of PVP and AgNO3 with the PVAL blend. AFM (Atomic Force) and SEM (Scanning Electron) microscope pictures are indicating an increase in roughness and clusters with rising loading of AgNO3 into the PVP/PVAL blend. The optical factors such as Eed (absorption edge), Eu (Urbach energy), Eg (transition bandgap), refractive index, extinction coefficient, optical conductivity, and dispersion energy (Eo and Ed) of pure PVAL, PVP/PVAL, and blend/ AgNO3 films were estimated via the UV-Vis optical absorbance. The influence of AgNO3 loading percentage and PVP on PVAL polymer linear susceptibility (LS) and nonlinear (NL) optical parameters (refractive index n(2), and susceptibility X(3)) are studied. The photoluminescence and optical absorption limiting for various AgNO3 concentrations in PVP/ PVAL blend films were analyzed. The results revealed a reduction in the transition bandgap of blend/ AgNO3 in comparison with the PVAL film. The inclusion of AgNO3 and PVP has improved the optical parameters of the PVAL, giving new composites useful for optical limiting, biosensors, nonlinear optical, and solar cell devices.