In the present study, pomegranate peel extract was used as a reinforcing agent in developing chitosan-based edible film. Different concentrations (0.2 g/mL, 0.4 g/mL, 0.6 g/mL, 0.8 g/mL, and 1.0 g/mL) of pomegranate peel extract were incorporated in chitosan-based edible film. A neat chitosan film was used as a control. This work covers the effect of pomegranate peel extract on the physical, biological, mechanical, thermal, and barrier properties of enriched chitosan-based edible film. The results showed that the thickness (0.142–0.159 mm), tensile strength (32.45–35.23 MPa), moisture (11.23–15.28%), opacity (0.039–0.061%), water (1.32–1.60 g·mm/m2), gas barrier properties (93.81–103.45 meq/kg), phenolic content (5.75–32.41 mg/g), and antioxidant activity (23.13–76.54%) of the films increased with increasing volume fraction of pomegranate peel extract. A higher concentration of incorporated pomegranate peel extracts significantly (p < 0.05) reduced the thermal stability of the film, along with its transparency, solubility, swelling, and color. This work revealed that the incorporation of a higher portion of pomegranate peel extract in chitosan film holds significant (p < 0.05) potential for the increase in biological activities of such films in terms of antioxidant and antimicrobial behavior. The properties of pomegranate peel extract-enriched chitosan films could be an excellent cure for free radicals, whereas they could also inhibit the growth of the foodborne pathogens during the processing and preservation of the food. Further studies are needed for the application of pomegranate peel extract-enriched edible films on food products such as fruits and vegetables in order to extend their storage life and improve the quality and safety of preserved food products.