Successful filler dispersion and establishment of good interfacial contact with the surrounding matrix are essential for optimized reinforcement in polymeric nanocomposites. In particular, in renewable-based composites this can be challenging, where hydrophilic attractions between nanofillers facilitate aggregation. Here an innovative approach to prepare cellulosic nanowhisker (CNW) reinforced polylactide (PLA) is presented. The lactide ring-opening polymerization is initiated from CNW surface hydroxyl groups after partial acetylation to control the grafting density. Grafting of PLA chains is verified by Fourier transform infrared spectroscopy. The resulting nanocomposites display exceptional properties; a heat distortion temperature of 120 degrees C is achieved at 10 wt % CNW loading and can be further enhanced to reach 150 degrees C at 15 wt % CNW. The formation of a percolating network is verified by comparison of modulus data with an established theoretical model. Additionally, nucleation by CNWs reduces the crystallization half-time to 15 s compared with 90 s for PLA. Melt-pressed films retain transparency indicating good filler dispersion.