Bio-based composites were prepared by using soy flour, jute, glutaraldehyde (GA), nanoclay, and glycerol. An optimum concentration of glycerol was used as a plasticizer. The synthesized composites were characterized by various techniques such as scanning electron microscopy (SEM), transmission electron microscopy (TEM), X-ray diffractometry (XRD), Fourier transform infrared spectroscopy (FTIR), and thermogravimetric analysis (TGA). The exfoliation of clay layers was detected both by XRD and TEM study. FTIR study showed an interaction between clay, jute, and soy flour. The percentage content of GA and nanoclay was found to have profound influence on various physical properties of the composites. The increase in the concentration of GA and nanoclay improved the thermal stability, flame retardancy, dimensional stability, and most importantly the mechanical properties of the prepared composite. (c) 2012 Wiley Periodicals, Inc. J. Appl. Polym. Sci., 2013