Renewable cellulose nanofiber (CNF)-reinforced biodegradable polymers (such as polycaprolactone (PCL)) are used in agriculture, food packaging, and sustained drug release. However, the interfacial incompatibility between hydrophilic CNFs and hydrophobic PCL has limited further application as high-performance biomaterials. In this work, using a novelZnEu-MOFas the catalyst, graft copolymers (GCL) with CNFs were grafted with poly(ε-caprolactone) (ε-CL) via homogeneous ring-opening polymerization (ROP), and used as strengthening/toughening nanofillers for PCL to fabricate light composite films (LCFs). The results showed that theZnEu-MOF([ZnEu(L)2(HL)(H2O)0.39(CH3OH)0.61]·H2O, H2L is 5-(1H-imidazol-1-yl)-1,3-benzenedicarboxylic acids) was an efficient catalyst, with low toxicity, good stability, and fluorescence emissions, and the GCL could efficiently promote the dispersion of CNFs and improve the compatibility of the CNFs and PCL. Due to the synergistic effect of the ZnEu-MOF and CNFs, considerable improvements in the mechanical properties and high-intensity fluorescence were obtained in the LCFs. The 4 wt% GCL provided the LCF with the highest strength and elastic modulus, which increased by 247.75% and 109.94% compared to CNF/PCL, respectively, showing the best elongation at break of 917%, which was 33-fold higher than CNF/PCL. Therefore, theZnEu-MOFrepresented a novel bifunctional material for ROP reactions and offered a promising modification strategy for preparing high-performance polymer composites for agriculture and biomedical applications.