Techniques like thermogravimetric analysis, differential scanning calorimetry, and polarized optical microscopy were used to study the thermal and crystallization behavior of cotton-polypropylene (PP) commingled composite system. Thermal analysis was used to understand the structure-property relationship and also to quantify the amount of moisture and volatiles, which causes the deterioration of the composite performance. Thermal stability of the composite was found be intermediate between that of PP and cotton fibers. Presence of treated reinforcements had increased the crystallinity of PP. Also, fibers act as heterogeneous nucleants and favor the early crystallization of PP in the composites. The crystallization and onset crystallization temperature values were increased by the presence of cotton fibers. The theories of heterogeneous nucleation and crystal growth kinetics were used to explain the growth of transcrystalline layer (TCL) of PP on cotton fibers. The interfacial free energy difference for nucleation of PP on fiber was found to be smaller compared with that in the bulk PP. This favors the formation and growth of TCL. The thickness of TCL and radius of the spherulites increase with the increase in the crystallization temperature. Fiber surface roughness and thermal stresses facilitate the growth of transcrystallinity on cotton fiber.