This paper investigated and compared the thermal and flexural properties and water absorption of natural caulis spatholobi residue fibers reinforced PPC/CSRF composites. Polypropylene carbonate (PPC) was reinforced by caulis spatholobi residue fibers (CSRF) which had been pretreated by continuous steam explosion. The effect of fiber content (10 to 60 wt%) on the properties and water absorption of PPC/CSRF biodegradable composites was investigated. The thermal properties of PPC/CSRF composites indicated that the addition of CSRF could improve the thermal stability of the composites. The flexural strength and modulus of the composites were found to be improved as the content of fiber increased. From the SEM micrographs, it was found that a small amount of fibers were pulled out on fractured surfaces of the composites, showing good network structure between the fiber and PPC matrix. The water absorption amount of the composites increased with increasing the fiber content. This paper demonstrates that the incorporation of low-cost and biodegradable caulis spatholobi residue fiber into PPC provides a practical way to produce completely biodegradable and cost-competitive composites with good mechanical properties.