This paper deals with the development of cellulose nanofibres (CNFs) reinforced biopolymers for use in packaging applications. Cellulose nanofibres were extracted from sawdust by a combination of chemical and mechanical treatments. The extracted cellulose nanofibres were chemically modified (fCNFs) and characterised by Fourier Transform Infrared Spectroscopy (FTIR). Bionanocomposites were prepared from biopolymers polylactic acid/polybutylene succinate (PLA/PBS) and cellulose nanofibres by compounding in a twin-screw extruder followed by injection moulding. The developed bionanocomposites were subjected to mechanical and thermal characterisation. As part of product development, CNF-biopolymer pellets were also extruded into filaments which were then 3D printed into prototypes. This work is a successful demonstration of conversion of waste residues into value-added products, which is aligned to the principles of circular economy and sustainable development.