Active biodegradable films from chitosan containing 10% to 30% w/w of citronella essential oil (CEO)and cedarwood oil (CWO) were developed by casting and solvent-evaporation method, and their physical, mechanical and thermal properties were investigated. Possible interactions between the chitosanchains and the essential oils were confirmed using Fouriertransform infrared spectroscopy (FTIR). Vari-ous amounts of CEO or CWO had significant effects on the films’ mechanical properties, with the exceptionof 10% of CEO, which did not significantly affect the tensile strength of the films. The incorporation ofthe two tested oils provoked a remarkable reduction in the water-vapor permeability properties, with adecrease of about 63% when 30% CEO was added in chitosan films. Thermogravimetric analysis showedthat degradation temperatures of the films containing CEO and CWO improved only slightly in compari-son to control films without essential oils. FTIR spectra analysis provided some insights on the possibleinteractions between chitosan and the two essential oils used. This study suggests that active films canbe developed by including CEO and CWO in a chitosan matrix. Such films can provide new formulation options for packaging industries in developing active packaging with potential food-technologyapplications.