Preparation and in vitro degradation of shape memory nanocomposites consisting of cross-linked poly(εcaprolactone) (c-PCL) and Fe 3 O 4 nanoparticles were investigated in this study. The degradation behaviors were evaluated from the decrease of mechanical property, weight, and molecular weight of polymer, the change of pH value of phosphate-buffered saline (PBS), and morphological changes in composites. The results from gel fraction and molecular weight analysis indicated some damages were brought to chemical networks of c-PCL, but its linear molecule configuration received less impact from PBS degradation medium. Expectedly, the negative influence of the in vitro degradation on shape memory effect had been observed. All these physical and chemical properties related to degradation had been tested to analyze degradation behaviors, which were further used to explain the changes in shape memory recovery. Furthermore, on the basis of the degradation results, the mechanism of c-PCL degradation was also put forward to illustrate the effect of degradation on shape memory. This research will supply a guideline for effectively using and preserving biodegradable shape memory composites.