A functional biopolymer-coated paper was prepared by coating a ternary blend of the alginate, carboxymethyl cellulose, and carrageenan with grapefruit seed extract (GSE) for the substitute use of synthetic polymer-coated paper. The microstructure of the surface and cross-section of the coated paper analyzed by field emission scanning electron microscope (FE-SEM) indicated that the biopolymer was compatible with the base paper and filled the pores of the porous fiber to make a smooth-surfaced coating paper. The properties of the biopolymer-coated paper, such as water and oil resistance, water vapor barrier, surface hydrophobicity, and mechanical properties, increased significantly compared with not only the base paper but also commercially used PE-coated paper. The blended biopolymer coating material exhibited strong antibacterial activity against food-borne pathogenic bacteria, Listeria monocytogenes and Escherichia coli, which were destroyed completely within 3 and 9 h, respectively. The packaging test for a minced fish cake packed with the biopolymer-coated paper showed the complete destruction of surface inoculated bacteria in 6–9 days. The biopolymer-coated paper showed a high potential for disposable food packaging applications to increase the shelf-life of packaged food.