AbstractBanana pseudostem fiber which is a lignocellulosic material, relatively inexpensive, and abundantly available was assessed in terms of its fiber‐matrix adhesion and dispersion in composites. Different types of adhesives were used. The mechanical and water absorption properties were investigated. Overall, for the produced composites, the incorporation of sawdust‐urea‐formaldehyde resin into prehydrolyzed banana fiber resulted in the best mechanical properties. Good adhesion‐fiber interaction is believed to be responsible for the good ultimate performance. The superior reinforcing characteristics of sawdust resin were shown by scanning electron microscopy (SEM), which revealed better fiber‐matrix adhesion. Water absorption tests revealed that the presence of the adhesives affected the amount of water absorbed. Copyright © 2004 John Wiley & Sons, Ltd.