Treatment and management of food processing waste is a major challenge for food industry. Potato processing industry generates tremendous amount of peel and consider it as zero valued waste. Again, pomace generated after juice extraction from sweet lime pulp is considered as waste and not properly utilized. Whereas these waste could be utilized for the development of biodegradable packaging film to overcome environmental issues. Composite films were prepared with varying proportion of potato peel powder (PP) and sweet lime pomace (SLP) in the ratio of 0:1(A), 0.5:1(B), 1:1(C), 1:0.5(D), 1:0(E) with an ultrasound treatment of 45 min, and 0:1(F), 0.5:1(G), 1:1(H), 1:0.5(I), 1:0(J) with an ultrasound treatment of 60 min. Ultrasound was applied for 45 and 60 min to film forming solutions to break down biopolymer particles small enough to form a film. All the films were analyzed for their barrier and mechanical properties. It was observed that increasing ultrasound treatment times gives better result in film properties and less PP content also gives better film properties, from these observations film G prepared with 0.5:1 (PP:SLP) showed better characteristics among all other films. Water vapor permeability, moisture absorption, water solubility, breakage strength and elongation capacity of G film were reported as 7.25 x 10(-9) g/Pa h m, 12.88 +/- 0.348%, 38.92 +/- 0.702%, 242.01 +/- 3.074 g and 7.61 +/- 0.824 mm respectively. However, thermal decomposition for film G took place above 200 C. The film forming solution of selected G film, added with clove essential oil (1.5%) as an antimicrobial agent was wrapped on bread and stored it for 5 days. The film was successful in lowering the weight loss, reducing the hardness and inhibition of surface microbial load from bread sample. (C) 2016 Elsevier B.V. All rights reserved.