In the present work, we report optical and nonlinear optical properties of Ag - Polyvinyl alcohol polymer films prepared through a chemical method. Optical absorption measurements show the surface plasmon resonance (SPR) around 410 nm. The SPR intensity increases with annealing temperature. Open aperture z-scan measurements done using 100 femtosecond laser pulses at 400 nm show an intensity dependent nonlinear light transmission behavior.© (2009) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.