The food packaging industry is characterized by an extensive reliance on synthetic plastics, which has significant implications for the environment. Consequently, there is a pressing demand for the development and implementation of biodegradable packaging alternatives. The investigation focused on examining the potential of blending polycaprolactone (PCL) and extracted gelatin (EG) as alternative materials to non-degradable petrochemical polymers. Gelatin, as one of the most interesting natural macromolecules, is successfully prepared from protein waste. It is a biodegradable polymer commonly used in various industrial applications. In this research, gelatin resulting from leather waste production was used to form films by emulsification, producing elastic and reliable films. Gelatin was combined with polycaprolactone, a biodegradable synthesized polymer, to improve the mechanical properties of the films. The thermal behavior, physico-mechanical behavior, and topography behaviors of the samples were characterized through differential scanning calorimetry (DSC), mechanical testing, and scanning electron microscopy (SEM), respectively. In addition, Fourier transform infrared spectroscopy (FTIR) was used to examine the characteristic peaks in gelatin, PCL, and their blends. Prepared films exhibited improvements in mechanical and thermal properties, which indicated excellent applications as biodegradable packaging films. The particle size of the prepared materials was investigated through the laser scattering technique. A well-defined particle size with a narrow distribution was detected. The objective of this research is to investigate the potential of creating biodegradable films by combining extracted gelatin (EG) with a biodegradable polymer (PCL). Adding value by creating a cheap and biodegradable polymer from recycling leather protein wastes is an extreme approach to eco-friendly waste management.