Biodegradable nanocomposites based on 5 wt% cellulose nanowhiskers (CNW) and polylactic acid (PLA) were prepared using an extrusion process. An anionic surfactant (5, 10 and 20 wt%) was used to improve the dispersion of the CNW m the PLA matrix. The results showed that increased surfactant content resulted in improved dispersion but at the same time degraded the PLA matrix. The results from mechanical testing showed a maximum modulus for the composite with 5 wt% surfactant and as the surfactant content increased, the CNW dispersion improved and the tensile strength and elongation at break was improved compared to its unreinforced counterpart.