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Bioplastics are biobased or biodegradable plastic synthesized from natural resources with similar features to conventional plastic and environmental sustainability. Seaweed species abundant in the coastal regions of Bangladesh are yet to be explored for developing biodegradable plastic to solve the plastic pollution problem. Semi‐refined kappa carrageenan was extracted from Gracilaria sp. with Pressurized Hot Water Extraction (PHWE) and blended with sorbitol and polyethylene glycol 1540 in this study, respectively. The presence of carrageenan and other functional groups was confirmed with FTIR analysis. The bioplastic films showed over 90 % biodegradability after 16 days of soil burial test and 98 % water solubility after immersion for 16 days. Maximum 20 MPa tensile strength and 44 % elongation were observed from the bioplastic films. The polyethylene glycol 1540 blended films showed better physical and mechanical properties. SEM analysis was conducted to evaluate the influence of tensile strength and elongation on the surface integrity of the bioplastic films. The findings indicate that Gracilaria sp. found in the coastal regions of Bangladesh, can be a potential candidate for developing bioplastics for food packaging and many other applications. [ABSTRACT FROM AUTHOR]