Biodegradable plastic composites designed with various natural and biobased material can potentially satisfy biodegradability specifications as per ASTM, CEN, ISO and OECD guidelines. A laboratory scale simulated aerobic composting facility (as per ASTM D 5338) was designed and utilized to determine and evaluate the extent of degradation of various components of compostable plastic composites. The materials of natural origin components like starch, microcrystalline cellulose, cellulose fibre, wheat straw, soy straw, distiller's dried grains with solubles (DDGS) and soy meal demonstrated ready degradability with conversion of 60% of the organic carbon to carbon dioxide. The individual polymers polylactic acid (PLA) and polycaprolactone (PCL) showed inherent degradability of 60% of the organic carbon to carbon dioxide within 180 days. The composites of polymers PLA with wheat straw and soy straw and PCL with DDGS and soy meal showed inherent degradability of 60% of the organic carbon to carbon dioxide within 180 days. Enhanced compostability of plastic is observed with inclusion of natural, ready degradable components in the composite in comparison to the individual polymer.