In this investigation, biodegradable composites were fabricated with polycaprolactone (PCL) matrix reinforced with pine cone powder (15%, 30%, and 45% by weight) and compatibilized with graphite powder (0%, 5%, 10%, and 15% by weight) in polycaprolactone matrix by compression molding technique. The samples were prepared as per ASTM standard and tested for dimensional stability, biodegradability, and fracture energy with scanning electron micrographs. Water-absorption and thickness-swelling were performed to examine the dimensional stability and tests were performed at 23 °C and 50% humidity. Results revealed that the composites with 15 wt % of pine cone powder (PCP) have shown higher dimensional stability as compared to other composites. Bio-composites containing 15-45 wt % of PCP with low graphite content have shown higher disintegration rate than neat PCL. Fracture energy for crack initiation in bio-composites was increased by 68% with 30% PCP. Scanning electron microscopy (SEM) of the composites have shown evenly-distributed PCP particles throughout PCL-matrix at significantly high-degrees or quantities of reinforcing.