A nanocomposite degradable chitosan‐rice starch (CRS) film was prepared by incorporation of Commercial (Comm.) and microbial synthesized silver (Ag) and zinc oxide (ZnO) nanoparticles (NPs) using solvent casting technique. The prepared films were characterized for thickness, surface color measurement, transparency, presence of crystalline features, surface topography and surface elemental composition. The fabricated nanocomposite films were evaluated for antimicrobial activity and were observed to curb growth of test Gram‐negative (Escherichia coli) as well as Gram‐positive microorganism (Staphylococcus aureus) in in vitro media petri plate study. The screened nanocomposite films were then tested to improve the shelf life of peach fruits (cv. Shan‐i‐Punjab) on packaging. The NPs incorporated nanocomposite films decreased the overall surface microbial load and enhanced the shelf life of packed peach fruits as compared to unpackaged and packaged fruits with control film. The lowest percentage loss in weight (4.75%) was recorded in peach fruits packaged with film incorporated with Comm. Ag NPs. Lowest change in diameter (4.25 cm to 4.05 cm) and highest ascorbic acid content (0.51 mg per g) was found in peach fruits packaged with Comm. ZnO NPs incorporated films. The lowest percent (9.6%) increase in total soluble solids was observed in fruits packaged with Comm. AgNPs incorporated film. The microbial counts on fruits surface was highest in unpackaged control treatment and lowest in fruits packaged with Comm. AgNPs. The Scanning EM study of the peach fruit surface showed the presence and adherence of microbial cells (bacteria, yeast and fungi) on the trichomes and fruit surface.