Jute fiber-reinforced polypropylene composites have been produced and characterized in order to investigate the influence of water on their mechanical properties. Being hydrophilic, jute fibers absorb a high amount of water causing swelling of fibers. On the other hand, the thermal shrinkage of polypropylene melt leaves some gaps between jute fibers and matrix material. We investigated whether these gaps could be filled by the swelling of wetted fibers. The fillup of these gaps would result in a higher shear strength between fibers and matrix during fracture. Our results suggest that swelling of jute fibers in a composite material can have positive effects on mechanical properties.