There is a big interest in the food packaging industry when it comes to substituting the non- renewable plastics with sustainable biomaterial such as biopolymers. The aim of this study is to create a bio-based barrier coating that contributes to the development for an excellent dispersion barrier against oxygen and grease. The challenge was to create an optimized formula to achieve a barrier material with low permeability and that has enough flexibility to be converted into end-products. Water-based formulations with xylan and additions of polycation PEI, plasticizers of xylitol and glycerol, and clay were made to create an optimized balance to accomplish the desired barrier properties. To evaluate the barrier properties of the material the methods for pinholes and grease resistance, well known traditional KIT method, was used to investigate the potential of the formula. The samples that had the most promising results regarding the quality in terms of occurring cracks or pinholes for example, were further analyzed with Scanning Electron Microscopy (SEM) and the Oxygen Transmission Rate (OTR) was measured. It was shown that the coatings that composed of <7 weight-% plasticizer (per dry content) had high grease resistance. Combining polycation and clay showed contributing factors such as a decrease in OTR and high resistance against grease penetration which shows a potential for successful development in barrier packaging applications.