In this study, agricultural residue from black oat, a cover crop usually grown to improve soil nutrients between the periods of regular crop production, was used as a source of cellulose fibers. Concentrations of 1, 3, and 5 wt. % of regenerated cellulose (RC) fibers blended in poly(vinyl alcohol) (PVA) solution were used to prepare the reinforced composite films (CFs) by the solvent cast method. Compared to neat PVA film (control), the effects of RC addition on functional properties of CFs, such as water absorption, transparency, thermal stability, and mechanical property were investigated. All CFs with different RC concentrations exhibited improved mechanical property and thermal stability while the swelling property was decreased, and no significant changes were observed in the film transparency as compared with the control film. Among the CFs, films with 3% RC significantly decreased water vapor transmission rate, swelling, and soluble fraction (p < 0.05). In addition, Young’s modulus and tensile strength were increased by 40 MPa and 3 MPa, respectively, while elongation at break was decreased by 4%, compared to the control film. The results indicate that RC from black oat might be feasible as potential bio fillers to improve film properties in a bio-based composite matrix.