Natural fiber reinforced polymer composites have been offering techno-economic and environmental advantages and have emerged as important materials for commodity, engineering and technological applications. their technological advantages are – easy processing, light weight, and good mechanical, and other properties. their environmental advantages originate from use of renewable and biodegradable raw materials; reduced dependence on non-renewable sources, reduced pollutant and greenhouse gas emissions and enhanced energy recovery. their economic advantages include low cost, high economic returns to famers cultivating natural fibers, and significant contribution to agro-based indian economy by providing cheaper substitution of existing products in the international market. several plant based natural fibers, for example - jute, coconut, sisal, coir etc., - have been used as reinforcing materials for polymeric composites in place of conventional fibers like glass, carbon, aramid, etc. jute fiber (jf) [corchorous capsularis (white jute) and corchorous olitorius (dark jute)] is the second most abundant natural fiber cultivated in the world (after cotton). india is a major jute producing country with approximate 800 thousand hectare of jute cultivation land area producing about 8300 thousand bales jute. about 75 major jute industries in india (including 59 of west bengal) with approximate 1,37,500 employees are producing about 1600 thousand tonnes jute products per annum and are exporting jute products of rs. 6000 million per annum. polyethylene is the most widely traded polymer in the world with about 35% of global polymer demand of about 200 million tonnes. polyethylene demand in india grew from 1946 kta in 2006 to 3479 kta in 2012, at a cagr of close to 10.2%. overall domestic pe production will grow rapidly at a cagr close to 14% with the production of ldpe, lldpe and hdpe growing at a cagr of 24.4%, 17.7% and 9.77% respectively. in view of these techno-economic advantages, our study successfully developed jute fiber reinforced chemically functionalized polyethylene composites (jf/cf-hdpe) by a novel palsule process. irrespective of their origin, all plant-based natural fibers are lingo-cellulosic, consisting of cellulose micro-fibrils in the matrix of lignin and hemicelluloses. hygroscopic and hydrophilic natural fibers have poor adhesion with hydrophobic polymer matrix in their composites and that limits composite properties at heavy loading and higher temperatures. three processes have been used to improve adhesion in natural fiber / polymer matrix in their composites – (i) fiber modifications process involving physical or chemical treatment of natural fibers; (ii) compatibilizers process that uses a compatibilizers to impart adhesion between the natural fiber and the polymer in the composites and (iii) palsule process that develops in-situ natural fiber/polymer matrix adhesion by using chemically functionalized polyolefin without any fibre treatment and without any compatibilizers. to develop jute fiber reinforced chemically functionalized polyethylene composites (jf/cf-hdpe) by palsule process, jute and modified polyethylene were extruded by conventional twin screw extruder in the range between 135-155oc and the extrudates were injection molded for composite samples. scanning electron micrographs showed jute fibres deeply embedded in functionalized polyethylene matrix with good fibre/matrix bonding that originated from esterification reaction of palsule process between hydroxyl group of jute and maleic anhydride of maleic anhydride grafted polyethylene matrix as established by ftir spectreoscopy. the composites have improved mechanical properties as compared to cf-hdpe matrix and their properties increased with increasing jute fibre content in the composites. the properties of the composites are better than those of the literature reported jute/polyethylene composites developed by fibre modification process. jf/cfpe composites also demonstrate good thermal and physical properties even after absorbing moisture when submerged in water. these jf/cf-hdpe composites have potential applications for automobile parts, furniture parts, interior building parts like ceilings and partitions and are therefore expected to provide economic returns to entrepreneurs setting up its industry, to farmers cultivating jute, and may contribute to indian economy by possibly generating foreign currency by exports. this technology is being patented.