This paper mainly investigates the fabrication process of jute yarn reinforced, bidirectional thermoplastic commingled composites (both untreated and treated). Commingling method was used to prepare the composites wherein the Polypropylene yarn (PP yarn) and jute yarn were wound together onto a metal plate in a particular configuration and then compression moulded. The mechanical properties of the composites prepared from chemically treated jute yarn were found to increase substantially compared to those of untreated ones. The surface morphologies of the fracture surfaces of the composites were recorded using scanning electron microscope (SEM). The SEM micrographs reveal that interfacial bonding between the treated jute yarn and the matrix has improved significantly by chemical treatments. The various chemical treatment mechanisms have been supported by FT-IR spectra. Theoretical modelling was used to predict the tensile properties and was found to be in accordance with the experimental results.