In the present investigation, microfibrils were extracted from raw bamboo and characterized using scanning electron microscope. Composites based on polyhydroxybutyrate (PHB) and bamboo microfibril were prepared with various microfibril loading. The mechanical and thermal properties of the resulting composites were measured. Tensile strength and impact strength of the composites were found to be increasing with increase in the loading of bamboo microfibrils, reached an optimum and thereafter decreased with further increase in microfibril loading. Percentage crystallinity was found to be increasing with increase in fibril loading. Thermal stability of the composite was higher than that of pure PHB. The composite could be developed further for various structural applications.