Nano-composite films were developed between silver nanoparticles (Ag NPs) and a low-density polyethylene (LDPE) using master batches by melt extruding and melt compounding. The Ag/PE composite film showed decreased gas permeability, moisture permeability coefficient, the tear strength, the longitudinal and transverse elongation to that of commercial LDPE. Although stiffness increased at high Ag (40 ppm) concentration, but the longitudinal and transverse tensile strength enhance comparing with commercial PE. Light transmittance and haze were comparable. Both Nano-silver and composite films are effective against Escherichia coli (E. coli). Antibacterial activity of nano-silver for E. coli was determined by diameter of the inhibition zone and the minimum inhibitory concentration of nano-silver is detected by tube double dilution method reaching 15.63 ppm. The composite films are effective inhibition of E. coli at concentrations of 40 ppm Ag nanoparticles. Moreover, Nano-silver migration occurs in composite film. One-side migration was conducted to detect under three food simulants (3% acetic acid, 50% ethanol and distilled water) at three degree of temperature (25 °C, 40 °C and 70 °C) on different period of time (2, 4, 6, 8, 10 and 12 hours). These results indicated that the highest migration amount was obtained with 3% acetic acid following distilled water and finally 50% ethanol under same conditions. The migration level is dependent upon time and temperature and high migration time and temperature can enhance migration level. These findings demonstrate that nano-silver-containing polyethylene composite film may have a great potential for developing antibacterial and acid food packaging system.