In the current study low molecular weight poly(vinylalcohol) (PVOH) was used to prepare chitosan/PVOH blends and chitosan/PVOH/montmorillonite nanocomposites via a reflux – solution – heat pressing method. The effect of PVOH content and montmorillonite type (hydrophylic vs. organically modified) on the morphology, mechanical, thermomechanical, barrier and antimicrobial properties of the obtained polymer blends and nanocomposite films was studied. Higher amounts of PVOH (20 and 30%) resulted in plasticization of the films, with an increase in the elongation at break and decrease of the stiffness and the strength while effective blending between chitosan and PVOH chains was observed based on the XRD and DMA findings. Addition of PVOH was beneficial for water and oxygen barrier properties of the obtained films while it did not influence the antimicrobial activity of films against the growth of Escherichia coli. Intercalated structures were obtained after the addition of hydrophilic and organo-modified clays leading into stiffening of the nano-modified films and enhancement of their barrier and antimicrobial properties.