Jute fabric reinforced polypropylene composites were fabricated by compression molding technique. Fiber content in the composites was optimized at 45 % by weight of fiber by evaluating the mechanical parameters such as tensile strength, tensile modulus, bending strength, bending modulus. Surface treatment of jute fabrics was carried out by mercerizing jute fabrics with aqueous solutions of NaOH (5, 10 and 20 %) at different soaking times (30, 60 and 90 mins) and temperatures (0, 30 and $70^{circ}C$). The effect of mercerization on weight and dimension of jute fabrics was studied. Mechanical properties of mercerized jute-PP composites were measured and found highest at 20 % NaOH at $0^{circ}C$ for 60 min soaking time. Thermal analytical data from thermogravimetric and differential thermal analysis showed that mercerized jute-PP composite achieved higher thermal stability compared to PP, jute fabrics and control composite. Degradation characteristics of the composites were studied in soil, water and simulated weathering conditions. Water uptake of the composites was also investigated.