In this study, xylan–alginate-based films were reinforced with nanoclays (bentonite or halloysite) by the solvent casting technique. The effect of the nanoclay loadings (1–5 wt %) on various properties—mechanical, optical, thermal, solubility, water sorption, and water vapor permeability (WVP)—of the xylan–alginate films were examined for their application as food packaging materials. A 5 wt % loading of either bentonite or halloysite resulted in a 49% decrease of the WVP due to the impermeable nature of the silicate layers that make up both bentonite and halloysite. Thermal stability and solubility of the nanocomposite films were not significantly influenced by the presence of the nanoclays, whereas the optical properties were significantly improved when compared to neat xylan–alginate blend. In general, films reinforced with bentonite exhibited superior mechanical and optical properties when compared to both halloysite-based nanocomposite and neat films.