Abstract Active packaging film was developed by incorporating Lycium barbarum fruit extract (LFE) into chitosan. The effects of LFE on physicochemical properties of the chitosan/LFE films were evaluated. When the weight ratio of LFE to chitosan was increased from 0:1 to 1:1, DPPH (2,2-diphenyl-1-picrylhydrazyl) free radical scavenging activity of the chitosan/LFE films increased near ten-folds and reached up to 35.8%; water vapour permeability of the chitosan/LFE films decreased 43.0% from 5.67 g m mm−2 day−1 kPa−1, and water solubility decreased from 100% to 24.52% because of interactions between LFE and hydrophilic groups of chitosan confirmed by FTIR. However, the chitosan/LFE films became darker after LFE was incorporated. The pure chitosan film showed better tensile strength (23.19 MPa) and elongation at break (22.29%) than the chitosan/LFE films (15.52 MPa and 9.58% for the one with weight ratio of LFE to chitosan of 0.6:1).