Natural fiber reinforced composites have gained considerable attention particularly in the manufacturing industry owing to their light weight, corrosion resistance, abundance, and biodegradability. In this work, alkaline treated and untreated groundnut shell powder (GSP) was used to reinforce recycled polyethylene to produce GSP-recycled polyethylene composites with improved mechanical properties and biodegradability. GSP with particle sizes of 0 -300 µm and 300 -600 µm was used in different proportions: 5%, 10%, 15%, 20%, 25%, and 30% wt. The fiber was immersed for 5 hours in a 10 wt% NaOH solution. Tensile and hardness test data showed an improvement in mechanical properties of the treated fiber composites. Results of water absorption test also showed that treated GSP-recycled polyethylene composites had a lower rate of water absorption than the untreated GSP-recycled polyethylene composites. Through Fourier transform infrared spectroscopy, disappearance of characteristics peaks of hemicellulose and lignin was observed. Growth of fungi on the fiber-reinforced composites was observed, which was evidence that GSP-recycled polyethylene composite was biodegradable. Finally, SEM micrographs showed uniform distribution of treated fibers in the polymer matrix; this explained the observed improvement in the mechanical properties of treated GSP-recycled polyethylene composites.