This study focuses on examining the influence of bast fibers on the flammability and thermal properties of the polylactide matrix (PLA). For this purpose, Urtica dioica and Vitis vinifera fibers were subjected to two types of modifications: mercerization in NaOH solution (M1 route) and encapsulation in an organic PLA solution (M2 route). In a further step, PLA composites containing 5, 10, and 15 wt% of unmodified and chemically treated fibers were obtained. The results of the tests show that only biocomposites containing mercerized fibers had a nearly 20% reduced flammability compared to that of PLA. Moreover, the biofiller obtained in this way belongs to the group of flame retardants that generate char residue during combustion, which was also confirmed by TGA tests. The M2 modification route allowed to achieve higher mass viscosity than the addition of unmodified and M1-modified fibers. The reason is that fibers additionally encapsulated in a polymer layer impede the mobility of the chain segments. The inferior homogenization of the M2-modified fibers in the PLA matrix translated into a longer combustion time and only a 15% reduction in flammability.