There is an increasing demand for sustainable and safe packaging technologies to improve consumer satisfaction, reduce food loss during storage and transportation, and track the quality status of food throughout its distribution. This study reports the fabrication of colorimetric pH-indicative and flame-retardant nanocomposite films (NCFs) based on polyvinyl alcohol (PVA) and nanoclays for smart and safe food packaging applications. Tough, flexible, and transparent NCFs were obtained using 15% nanoclay loading (PVA-15) with superior properties, including low solubility/swelling in water and high thermal stability with flame-retardant behavior. The NCFs showed average mechanical properties that are comparable to commercial films for packaging applications. The color parameters were recorded at different pH values and the prepared NCFs showed distinctive colorimetric pH-responsive behavior during the transition from acidic to alkaline medium with high values for the calculated color difference (∆E ≈ 50). The prepared NCFs provided an effective way to detect the spoilage of the shrimp samples via monitoring the color change of the NCFs during the storage period. The current study proposes the prepared NCFs as renewable candidates for smart food packaging featuring colorimetric pH-sensing for monitoring food freshness as well as a safer alternative choice for applications that demand films with fire-retardant properties.