We studied the green synthesis and antibacterial activity of chitosan-silver (Ag) nanocomposite films for application in food packaging. Green synthesis of Ag nanoparticles (AgNPs) was achieved by a chemical reaction involving a mixture of chitosan-silver nitrate ($AgNO_3$) in an autoclave at 0.1 MPa, $121^{circ}C$, for 15-120 s. The formation of AgNPs in chitosan was confirmed by both UV-Visible spectrophotometry and transmission electron microscopy (TEM) and the effects of chitosan-$AgNO_3$ concentration and reaction time on the synthesis of AgNPs in chitosan were examined. The resulting chitosan-Ag composite films were characterized by various analytical techniques and their antibacterial activity was evaluated based on the formation of halo zones around films, indicating inhibition of the growth of Escherichia coli. A fourier-transform infrared (FTIR) spectroscopy analysis showed that free amino groups in chitosan acted as effective reductants and AgNP stabilizers. The composite films exhibited enhanced antibacterial activity with increasing Ag content on the surface of as-prepared composite films.