The goal of this work was to evaluate the technical feasibility of walnut shell flour (WSF) as substitute for wood in walnut shell flour/thermoplastic starch (WSF/TPS) composites. The effects of walnut shell flour (WSF), thermoplastic starch (TPS), and nanoclay on the physical and mechanical properties of WSF/TPS composites were investigated. The composite samples were formed in a Colin extruder with four-chamber heat with temperatures. Then, test samples were made using injection molding. The addition of up to 40% WSF greatly improved the tensile strength, flexural strength, and elasticity modulus of the composite. Also, the composites made with higher WSF contents had increased thickness swelling and water absorption. The incorporation of nanoclay (0% to 5%), greatly improved the tensile properties. Soil burial degradation experiments showed that biodegradation was accelerated by the increase of starch in the composite mixtures. The study showed that WSF can be successfully utilized for the manufacture of composites with useful physical and mechanical properties.