Surface modification of jute fibers was accomplished by performing chemical treatments including detergent washing, dewaxing, alkali, and acetic acid treatment. Morphology of modified surfaces examined using scanning electron microscopy (SEM) revealed improved surfaces for better adhesion with matrix. Better thermal performance of treated fibers was found from thermogravimetric analysis (TGA). Enhanced tensile properties of treated fibers were obtained from tensile tests. Using solution intercalation technique and magnetic stirring, 2%, 3%, and 4% by weight Montmorillonite K10 nanoclay were dispersed into a biodegradable polymer, Biopol. Thermal performance of nanoclay infused Biopol characterized using dynamic scanning calorimetry (DSC) showed improved degree of crystallinity by 7%. Jute fiber reinforced Biopol biocomposites with and without nanoclay were manufactured using treated and untreated jute fibers by compression molding process. Thermal and mechanical responses of treated fiber reinforced Biopol composites (TJBC) without nanoclay evaluated using dynamic mechanical analysis (DMA) and flexure tests showed 9% and 12% increase in storage modulus and flexure strength, respectively, compared to untreated jute fiber reinforced composites (UTJBC). The respective values were 100% and 35% for 4% nanoclay infused TJBC compared to UTJBC without nanoclay.