Biodegradable composites were fabricated using chemically treated woven jute fiber, a biodegradable polymer (biopol), and 2–4 wt. % montmorillonite K10 nanoclay by compression molding process. Physical, mechanical, and biodegradability properties of these composites were evaluated in this study. Morphology of modified surfaces of jute fabrics examined using scanning electron microscopy and Fourier transform infrared spectroscopy revealed improved surfaces for better adhesion with matrix. Nanoclay infused samples demonstrated lower moisture and water absorption compared with treated jute fiber biopol composites and untreated jute fiber biopol composites. The effect of moisture absorption on flexural properties and degradability on the dynamic mechanical properties was also studied. Flexural properties were found to degrade with moisture absorption, and the percentage reduction was lower in nanoclay infused samples compared with samples without nanoclay. Storage modulus decreased with biodegradation and rate of decrease was lower in nanoclay infused specimens.