Methylcellulose (MC) films were prepared by casting from its 1% aqueous solution containing 0.5% vegetable oil, 0.25% glycerol, and 0.025% Tween (R) 80. Poly(caprolactone) (PCL) films were prepared by compression molding from its granules. Biodegradable composite films were fabricated using MC film as reinforcing agent and PCL as the matrix material by compression molding. One layer of MC film was reinforced with two layers of PCL films. The MC content in the composites was varied from 10 to 50% by weight. Mechanical, barrier, and degradation properties of PCL, MC, and composite films were evaluated. The values of puncture strength (PS), puncture deformation (PD), viscoelasticity (gamma) coefficient, and water vapor permeability (WVP) of the composites (50% MC content) were found to be 124.3 N/mm, 3.2 mm, 31%, and 2.6 g.mm/m(2).day.kPa, respectively. Oxygen transmission rate (OTR) of PCL, MC, and composites (50% MC) were found to be 175, 25, 22 cc/m(2)/d, respectively, which indicated that composite films showed significantly lower OTR than PCL films. Degradation tests of the composite films (50% MC) were performed for 6 weeks in aqueous medium (at 25 degrees C), and it was found that composites lost its mass slowly with time. After 6 weeks, mass and PS of the composites were decreased to 13.4 and 12%, respectively. Composite interface was studied by scanning electron microscopy (SEM). The MC film had good adhesion with PCL matrix during compression molding and suggested strong interface of the composite system. SEM image after 6 weeks of degradation showed some openings in the interface and revealed slow degradation of the MC films. (C) 2011 Wiley Periodicals, Inc. J Appl Polym Sci 123: 1690-1697, 2012