Herein, the effects of insertion of Ag₂O nanosheets of thicknesses 25–75 nm between stacked layers of GeO₂ on the structural, morphological, and optical properties of germanium dioxide are explored. While the stacking of GeO₂/Ag₂O/GeO₂ layers does not alter the amorphous nature of the structure, significant effects on the transmittance, reflectance, absorption coefficient, Urbach's tails, and dielectric constant are observed. Silver oxide nanosheets successfully enhance the light absorbability of germanium dioxide in the visible and the infrared (IR) range of light. The light absorbability is increased by more than 12 times after the insertion of 75 nm-thick Ag₂O nanosheets. In addition, a widening in Urbach's tails and narrowing in the indirect bandgap of GeO₂ are detected as a result of increasing Ag₂O layer thickness. The dielectric constant and optical conductivity are also increased by ≈59.6% and 191.4% in the IR range of light. The enhancement in the optical properties of GeO₂ that results from the insertion of Ag₂O nanosheets makes germanium dioxide more appropriate for optoelectronic applications.