Nanocellulose was prepared by acid hydrolysis of microcrystalline cellulose (MCC) at different hydrobromic acid (HBr) concentrations. Polyvinyl alcohol (PVA) composite films were prepared by the reinforcement of nanocellulose into a PVA matrix at different filler loading levels and subsequent film casting. Chemical characterization of nanocelluloses was performed for the analysis of crystallinity ($X_c$), degree of polymerization (DP), and molecular weight ($M_w$). The mechanical and thermal properties of the nanocellulose reinforced PVA films were also measured for tensile strength and thermogravimetric analysis (TGA). The acid hydrolysis decreased steadily the DP and $M_w$ of MCC. The crystallinity of MCC with 1.5 M and 2.5 M HBr showed a significant increase due to the degradation of amorphous domains in cellulose. Higher crystalline cellulose showed the higher thermal stability than MCC. From X-ray diffraction (XRD) analysis, nanocellulose samples showed the higher peak intensity than MCC cases. Reduction of MCC particle by acid hydrolysis was clearly observed from scanning electron microscope (SEM) images. The tensile and thermal properties of PVA composite films were significantly improved with the increase of the nanocellulose loading.