This work describes moisture sorption behavior and water vapor permeability of glutaraldehyde-crosslinked carrageenan/polyvinyl alcohol (Carr/PVA) films. The moisture uptake has been studied under various relative humidity (RH) and the data obtained has been interpreted in the terms of various isotherm models such as GAB, Oswin and Halsey models. The moisture permeability through the films has been characterized in the terms of various parameters like water vapor transmission rate (WVTR), permeance (P) and water vapor permeability (WVP). It was found that these parameters are greatly affected by the degree of crosslinking of the films. Finally, the model drug Gentamycin Sulphate was loaded in to the films and its release was monitored kinetically in the physiological buffer (PF) at 37°C. The films exhibited diffusion controlled release mechanism. The films are non-cytotoxic.