In recent decades, the rapid increase in the global population has generated large volumes of municipal wastewater. At the same time, natural freshwater reserves are diminishing, while the demand for water supply is increasing daily. Water reclamation is seen as a viable solution to address the increasing demand for water. Membrane technology has emerged as a promising method for treating municipal wastewater in this regard. However, maintaining high flux with good antifouling properties remains a major challenge. This study investigates using polyethylene glycol (PEG) as a low-cost, safe, environmentally benign additive to prepare high-performing polyacrylonitrile (PAN) mixed matrix membranes via optimised manufacturing conditions while maintaining high flux and antifouling properties. The study utilised different concentrations of PEG, and physicochemical analysis showed that PEG was present, leading to increased membrane porosity, hydrophilicity, and thermal stability. The addition of PEG-1000 significantly altered the surface morphology of the PAN membranes, resulting in a transition from finger-like to a more spongy structure. The modified membranes exhibited enhanced antifouling properties and a higher flux recovery rate (over 80%) when exposed to simulated municipal wastewater compared to the pristine PAN membranes. Additionally, the PEG-modified PAN membranes maintained high BSA rejection (>99%) and demonstrated long-term stability across multiple filtration cycles. These results indicate the potential of PEG-modified PAN membranes for treating municipal wastewater.