Due to the need to replace non-biodegradable plastics, arabinoxylan (AX) films were evaluated for potential use in food packaging. The mechanical properties, hydrophobicity, and biodegradability of AX films were evaluated after extracting AX from corn bran byproducts of dry-milling (DCB), wet-milling (WCB), and dried distiller’s grains with solubles (DDGS) using acid-alkali procedure. Packaging materials were created using the three AX extracts combined with laccase and sorbitol as the basis for each film. The three AX films were then modified by immersing their surfaces in a lipase-acetate solution. Thickness of modified DCB AX and modified DDGS AX films was significantly increased (P<0.05) compared to their unmodified AX films. Tensile properties of the modified DCB AX films were significantly improved (P<0.05), as opposed to the unmodified DCB AX films. Tensile properties of the modified WCB AX and modified DDGS AX films were enhanced, but insignificantly (P>0.05), compared to their unmodified AX films counterparts. Significant increase (P<0.05) in tear resistance and insignificant increase (P>0.05) in puncture resistance were observed for all modified AX films. Moisture content of modified AX films created from DCB, WCB, and DDGS was significantly decreased (P<0.05) compared to unmodified AX films. Significant decrease (P<0.05) in water solubility and insignificant decrease (P>0.05) in water vapor permeability were found in modified DCB AX films compared to unmodified DCB AX films. Insignificant decrease (P>0.05) in water solubility resulted in modified WCB AX films compared to unmodified WCB AX films. Water vapor permeabilities of the modified AX films made from WCB and DDGS were significantly reduced (P<0.05) compared to their unmodified AX films. AX films were positively affected by suspension in the lipase-acetate mixture, making the modified films ductile, flexible, and more resistant to deformation when stretched compared to unmodified AX films. WCB AX and DDGS AX films were more hydrophobic and biodegradable than DCB AX film with the modification of film surface suspension in the lipase-acetate solution. The modified DCB AX films showed better physical and mechanical properties, while the hydrophobicity and biodegradability of modified WCB AX films make it a safer packaging material which can also elongated shelf-life for food.