This study explored the enhancement of chitosan for wound dressing applications through selective functionalization with arginine and hydroxyproline amino acids, combined with polyvinyl pyrrolidone (PVP) and polyvinyl alcohol (PVA) in composite films. The research employed chemoselective amino acid grafting followed by solution casting to fabricate the composite materials. Fourier transform infrared (FTIR) analysis verified successful chitosan modification through the presence of a carbamate bond at 1719 cm⁻¹ and an amide bond shift from 1660 to 1680 cm⁻¹, with nuclear magnetic resonance (NMR) analysis providing additional confirmation. The composite films demonstrated exceptional properties, achieving maximum tensile strength of approximately 55 MPa and swelling ratio of about 400 %. Statistical analysis revealed significant variations in mechanical and swelling properties across formulations (p < 0.05), with analysis of variance (ANOVA) showing a between-group sum of squares of 122,980.519 for tensile strength and 352,306.333 for swelling. Duncan's multiple range test identified distinct groupings for tensile strength (5.67–119.67 MPa) and swelling ratios (320.33–565.33 %), demonstrating the impact of composition on material properties. Thermal stability analysis (25–600 °C) revealed a multi-step degradation process, confirming successful modification and composite formation. The amino acid-modified chitosan composites showed remarkable antibacterial enhancement, exhibiting 60 % greater activity against both Gram-positive and Gram-negative bacteria compared to unmodified chitosan. These findings demonstrate the potential of selectively functionalized chitosan composite films for advanced wound dressing applications, combining enhanced antibacterial efficacy with robust mechanical and thermal properties. Future research directions include formulation optimization and in vivo validation of clinical efficacy.