The composite group investigates endlessly the features of natural fiber/thermoplastic matrix composite materials to improve recyclability, use of renewable sources, and reduce material costs. In this context, the development and use of biodegradable polymers for composites is considered one of the important strategies for reducing environmental challenges. Here, axially oriented fibers incorporated in conforming matrices make up fiber-reinforced composites. Due to the high viscosity of molten Poly(ε-caprolactone) (PCL), impregnating into reinforced fiber strands is challenging. So, continuous hybrid flax and hemp fibers were produced using a braiding technique by considering the fiber aspect ratio (AR). The resulting braided yarns were parallel aligned with PCL filaments before being compression molded into unidirectional composite laminates. The flax and PCL blend had better mechanical properties than the other produced composites. Temperatures for the glass transition, melting, and crystallization, were much greater than for neat PCL. However, mechanical properties were barely altered due to the ductile nature of PCL.