Epoxy matrix composites reinforced with recycled cellulose fibre (RCF) were fabricated and characterized with respect to their flexural and impact properties. Reinforcement of the epoxy by RCF resulted in a significant increase in the strain at failure, fracture toughness and impact toughness but only a moderate increase in flexural strength and flexural modulus. The effect of accelerated exposure to seawater on the flexural and impact properties was also investigated. The salient toughening mechanisms and crack-tip failure processes were identified and discussed in light of observed microstructures, in particular the orientation of RCF sheets to the applied load. (C) Koninklijke Brill NV, Leiden, 2009