Effects of butantetracarboxylic acid (BTCA) modification, choice of matrix, and fiber volume fraction on hygroexpansion of wood fiber composites have been investigated. Untreated reference wood fibers and BTCA‐modified fibers were used as reinforcement in composites with matrices composed of polylactic acid (PLA), polypropylene (PP), or a mixture thereof. The crosslinking BTCA modification reduced the out‐of‐plane hygroexpansion of PLA and PLA/PP composites, under water‐immersed and humid conditions, whereas the swelling increased when PP was used as matrix material. This is explained by difficulties for the BTCA‐modified fibers to adhere to the PP matrix. Fiber volume fraction was the most important parameter as regards out‐of‐plane hygroexpansion, with a high‐fiber fraction leading to large hygroexpansion. Fiber‐matrix wettability during processing and consolidation also showed to have a large impact on the dimensional stability and moisture uptake. POLYM. COMPOS., 2009. © 2008 Society of Plastics Engineers