Biocomposites composed from polyvinyl alcohol (PVOH)/palm kernel shell powder (PKSP) were prepared via a solution casting method. Halloysite nanotubes (HNTs) were used to gradually replace PKSP to study the effect of hybrid fillers and also to compare the properties of PVOH/PKSP biocomposites with a commercial filler, HNTs. The effect of HNTs’ addition on the biocomposites was investigated based on mechanical properties, physical properties, and its biodegradability. The incorporation of HNTs in the biocomposites enhanced the tensile properties. Scanning electron microscopy (SEM) studies revealed that better filler and matrix interaction was achieved after the incorporation of HNTs. Moreover, the water absorption and water vapour transmissibility (WVT) of biocomposites decreased. The biodegradability of biocomposites filled with HNT was lower compared to the biocomposites filled with PKSP.