In this study, we focus on the recycling of cardboard waste and sugarcane bagasse (SCB) for the preparation of carboxymethyl cellulose (CMC) and its conversion into a biodegradable film. Sodium alginate (SA) was added to form a biodegradable composite film. SA was used to increase film permeability. Glycerol, which is a plasticizer, was used to increase the tensile strength (TS) and film expansion. To characterize the CMC, X-ray diffraction, Fourier transform infrared spectroscopy, and scanning electron microscopy were used. The addition of olive oil to the CMC-SA matrix highlighted its antimicrobial property against Escherichia coli (E. coli) and Staphylococcus aureus (S. aureus). A slight decrease in tensile strength was observed with the addition of olive oil (OO), which improved the functional properties of the control films as well as lowered moisture content and water solubility. But considering all other factors, the composite films obtained from sugarcane bagasse and cardboard waste incorporated with olive oil are suitable for applications in the field of food packaging.