The biodegradable polymer poly(butylene adipate-co-terephthalate) (PBAT) starts decomposing at room temperature. Kaolin clay (KO) was dispersed and blended into PBAT composites using a solution-casting method. Fourier-transform infrared spectroscopy (FTIR), X-ray diffraction (XRD), scanning electron microscopy (SEM), and transmission electron microscopy (TEM) were used to evaluate the structure and morphology of the composite materials. PBAT/kaolin clay composites were studied by thermogravimetric analysis (TGA). The PBAT composite loaded with 5.0 wt% kaolin clay shows the best characteristics. The biocomposites of PBAT/kaolin [PBC-5.0 (37.6MPa)] have a good tensile strength when compared to virgin PBAT (18.3MPa). The oxygen transmission rate (OTR), with ranges from 1080.2 to 311.7 (cc/m2/day), leads the KO content. By including 5.0 wt% kaolin 43.5 (g/m2/day), the water vapor transmission rate (WVTR) of the PBAT/kaolin composites was decreased. The pure PBAT must have a WVTR of 152.4 (g/m2/day). Gram-positive (S. aureus) and Gram-negative (E. coli) food-borne bacteria are significantly more resistant to the antimicrobial property of composites. The results show that PBAT/kaolin composites have great potential as food packaging materials due to their ability to decrease the growth of bacteria and improve the shelf life of packaged foods.