Composite films were prepared with alginate and roselle extract (HE) at different concentrations (1%, 3%, and 5% w/v) via solvent casting technique and analyzed in terms of physical, mechanical, and antibacterial properties. The incorporation of HE into alginate films resulted in rough and heterogeneous surface characteristics with increasing concentrations of HE. The thickness and water vapor permeability of alginate–HE composite films were significantly higher (p < 0.05) compared to pure alginate films. Moreover, water content, solubility, swelling, tensile strength, and elongation at break value of the composite films decreased (p < 0.05) with increasing concentrations of the extract. FTIR spectra revealed shifts and intensity variations in the composite films and the formation of new peaks suggesting a possible interaction between alginate and HE. Alginate–HE films exhibited good antibacterial activity against Gram-positive (Staphylococcus aureus and Bacillus subtilis) and Gram-negative (Escherichia coli and Klebsiella pneumoniae) bacteria. The antibacterial effect of the films, more pronounced against Gram-positive bacteria, increased with higher amounts of HE. The resulting films may be utilised as new biodegradable, antibacterial films in the food packaging industry to prolong shelf life and preserve food safety. Graphical Abstract: [Figure not available: see fulltext.]