The focus of the present work is to prepare low‐density polyethylene (LDPE)‐graphene (G) nanocomposite films with improved gas barrier properties by melt extrusion. A narrow range of the graphene (0.05–0.3 wt.%) as filler was used in the LDPE matrix. The rheological analysis indicating that there is no significant influence on the LDPE chains mobility with the addition of filler. The nanocomposites percent crystallinity (Xc%) increase from 25.0% to 31.6% compared to neat LDPE. The X‐ray diffractogram shows a change in width half height of the peak positioned at 26° ((002) plane) from 0.69 (graphite) to 1.24 (graphene), revealing the asymmetry of this plane. The optical microscopy images show a good dispersion of the nanoparticles in the polymer matrix. The mechanical properties of the nanocomposites in longitudinal direction demonstrate better improvement with addition of the filler as compared to the transverse direction. The contact angle measurements of nanocomposites for water and ethylene glycol do not shows a significant variation in comparison to neat LDPE. The nanocomposites show 26% enhancement in the oxygen barrier property. Thus, here we present the cost‐effective LDPE‐graphene nanocomposites with improve oxygen barrier property, which can be used in different industrial application especially in food packaging.