The objective of the present study was to develop chitosan (CS) based novel functional films containing Chinese chive root extract (CRE) using solution casting method. CRE at different concentrations (1, 3 and 5% in w/w) were incorporated into the film-forming solution. Scanning electron microscopy (SEM), Fourier transform-infrared spectroscopy (FT-IR), X-ray diffraction (XRD) and thermal behavior analysis (DSC & TGA) were performed to investigate the structure, potential interaction and thermal stability of prepared films. It was revealed by SEM that higher extract concentration triggered the formation of agglomerates within the films. Incorporation of CRE into CS resulted in decrease tensile properties of the films from 28.9 to 15.4 MPa, whereas thickness was increased from 0.076 to 0.113 mm. The water solubility, swelling degree and water vapor permeability were significantly decreased from 31.6 to 18.7%, 57.4 to 40.5% and 15.67 to 7.81 × 10-11 g·m-1s-1Pa-1, respectively. DPPH and ABTS radical scavenging ability of CS-CRE films were increased from 6.95 to 47.05% and 11.98 to 57.38%, respectively. CS-CRE5 film showed the highest biodegradability of 47.36%. The films prepared by addition of CRE into CS exhibited good antioxidant and antimicrobial activity indicating that it could be developed as bio-composite food packaging material for food industry.