In this study, we worked on improving the orientation of hemp fibres in composites by using our recent development of co-wrapped yarn structures. We investigated the influence of fibre content and wrap density on the properties of composites. Composites were fabricated by compression moulding of 0/90 bidirectional prepregs. Compared to neat PLA, the tensile and flexural modulus and the strength of the PLA-hemp composites were significantly higher as a result of the increased fibre content. Impact strength of the composites decreased initially up to 10 mass % fibre loading, but even higher fibre loading caused an improvement in impact strength. From the DMTA results, it was evident that incorporation of the fibres gives a considerable increase in storage modulus and a decrease in tan δ values. From the general trend in the results obtained, it can be affirmed that co-wrapped hybrid yarn with lower wrapping density leads to lower mechanical properties in the composite. The study performed with DSC revealed that the crystallisation temperature of the hemp-reinforced PLA composites decreased compared to pure PLA, which indicates that the hemp fibres hinder the migration and diffusion of PLA molecular chains to the surface of the nucleus in the composites.