A new nano silver particels loaded graphene oxide (AgNPs@GO) was obtained through ultrasonic assisted liquid phase method. In AgNPs@GO, nano silver particels (AgNPs) are mainly anchored at oxygen containing groups and defects of graphene oxide (GO) sheets, part of GO sheets are reduced and some Ag(0) atoms have been oxidized to Ag ⁺ ions. AgNPs@GO exhibits significantly stronger ability for inhibiting Pseudomonas aeruginosa than that of AgNPs and GO. Therefore, AgNPs@GO was further introduced to polyethylene (PE) matrix as an additive to prepare a new composite material 0.48wt%-AgNPs@GO/PE. Compare with bare PE and AgNPs doped PE composites, 0.48wt%-AgNPs@GO/PE not only has a better antibacterial ability and stronger water vapor barrier property, but also dissolves out less nonvolatile substance than PE in water and ethanol solution.