This study developed a novel PHB-lignin-jute biodegradable composite with preferable mechanical properties and low water absorption. The appearances of fracture surface of composites were analyzed by scanning electron microscope. The result suggested a Gaussian-like distribution of the size particles supporting the presence of lignin with a radius smaller than 0.5 ${mu}m$. According to X-ray diffraction, the presence of lignin and jute fibers was decreased the crystallization of PHB. Moreover, the glass transition temperature of PHB increased, and the endotherm during glass transition was decreased. The maximum tensile strength and modulus of composites were obtained with 30 wt% jute fiber contents and 4 wt% lignin contents. The presence of jute fibers was largely increased the water absorption of composites. However, the presence of lignin was effectively decreased the water absorption of composites at saturation levels.