In this research work, a coated paper was prepared with poly (butylene adipate-co-terephthalate) (PBAT) film to explore its use in eco-friendly food packaging. The paper was coated with PBAT film for packaging using hot pressing, a production method currently employed in the packaging industry. The coated papers were evaluated for their structural, mechanical, thermal, and barrier properties. The structural morphology and chemical analysis of the coated paper confirmed the consistent formation of PBAT bi-layered on paper surfaces. Surface coating with PBAT film increased the water resistance of the paper samples, as demonstrated by tests of barrier characteristics, including the water vapor transmission rate (WVTR), oxygen transmission rate (OTR), and water contact angle (WCA) of water drops. The transmission rate of the clean paper was 2010.40 cc m−2 per 24 h for OTR and 110.24 g m−2 per 24 h for WVTR. If the PBAT-film was coated, the value decreased to 91.79 g m−2 per 24 h and 992.86 cc m−2 per 24 h. The hydrophobic nature of PBAT, confirmed by WCA measurements, contributed to the enhanced water resistance of PBAT-coated paper. This result presents an improved PBAT-coated paper material, eliminating the need for adhesives and allowing for the fabrication of bi-layered packaging.