In this study, 5% phosphate glass (PG) containing chitosan film was grafted with Polyethylene Glycol (PEG) using UV-radiation. A series of formulation was developed with PEG in methanol. In order to optimize the grafting conditions, the effect of PEG concentration and different radiation doses were studied. Tensile strength (TS), elongation at break and thermal stability of grafted films were studied. The highest TS was found to be 13.80 MPa with 100% PEG, 0% methanol using 2% photoinitiatior at 3 minutes soaking time at 30th UV passes in 5% phosphate glass containing chitosan film. The physico-mechanical properties of prepared films were improved by grafting with PEG with the aid of UV radiation. The DTA/TG study also showed that treated 5% phosphate glass containing chitosan film was more thermally stable than untreated film. The water uptake behaviors of these films were also studied.