This study introduces biodegradable nursery bags using poly(lactic acid) (PLA), a widely used biodegradable polymer, and spent coffee grounds (SCGs), a byproduct of the brewing process in the coffee industry. SCGs were oil-extracted to produce extracted spent coffee grounds (exSCGs), which were characterized by their physical properties, chemical functionality, and thermal behavior. The exSCGs were blended with PLA at loadings of 5, 10, and 15 wt%. Analysis showed that exSCGs retained 3-5 wt% residual coffee oil, exhibiting a lower surface area (1.1163 m(2)/g) compared to SCGs (1.5010 m(2)/g), along with a higher pore volume (1.148 x 10(-3) cm(3)/g) and pore size (similar to 410 nm). All PLA/exSCG bio-composite films displayed a light brown color, well-dispersed exSCG particles, and excellent UV light barrier properties, with transmittance reduced to 1-2%. The residual coffee oil acted as a plasticizer, reducing the glass transition temperature, melting temperature, and crystallinity with increasing exSCG content. Mechanical testing revealed enhanced flexibility compared to neat PLA. Soil burial tests showed increased biodegradability with higher exSCG content, supported by SEM analysis revealing cracks around exSCG particles. The PLA/exSCG blend containing 10 wt% exSCGs exhibited optimal performance, with a significant increase in melt flow index (from 4.22 to 8.17 g/10 min) and approximately double the melt strength of neat PLA, balancing processability and mechanical properties. This innovation provides a sustainable alternative to plastic nursery bags, addressing waste valorization and promoting eco-friendly material development for agricultural applications.