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In this study, novel smart drug release films were prepared by blending chitosan with polyethylene glycol methyl ether (PEGME), also named as methoxy polyethylene glycol (mPEG), for controlled drug release applications. The polymeric films were characterized by Fourier transform infra-red for functional groups analysis, scanning electron microscopy for morphology and X-ray photoelectron spectroscopy for chemical and surface analysis followed by mechanical and thermal analysis. The mechanical properties showed that with the addition of PEGME (40%), the tensile strength and elongation break were increased up to 34.14 MPa and 26.40%, respectively as compared to the controlled sample (without PEGME). The developed biodegradable films were tested for Metformin hydrogen chloride release ability at a particular rate in phosphate buffer saline solution at pH 7.4. The results showed that chitosan/PEGME blends could be employed for controlled drug release and other biomedical applications. Keywords: Chitosan, Biodegradable films, PEGME, Controlled drug release, PBS, Biomedical applications