This study aims to enhance value addition to agricultural byproducts to produce composites by the solution casting technique. It is well known that PLA is moisture-sensitive and deforms at high temperatures, which limits its use in some applications. When blending with plant-based fibers, the weak point is the poor filler–matrix interface. For this reason, surface modification was carried out on hemp and flax fibers via acetylation and alkaline treatments. The fibers were milled to obtain two particle sizes of <75 µm and 149–210 µm and were blended with poly (lactic) acid at different loadings (0, 2.5%, 5%, 10%, 20%, and 30%) to form a composite film The films were characterized for their spectroscopy, physical, and mechanical properties. All the film specimens showed CO/OH groups and the π-π interaction in untreated flax fillers showed lignin phenolic rings in the films. It was noticed that the maximum degradation temperature occurred at 362.5 °C. The highest WVPs for untreated, alkali-treated, and acetylation-treated composites were 20 × 10−7 g.m/m2 Pa.s (PLA/hemp30), 7.0 × 10−7 g.m/m2 Pa.s (PLA/hemp30), and 22 × 10−7 g.m/m2 Pa.s (PLA/hemp30), respectively. Increasing the filler content caused an increase in the color difference of the composite film compared with that of the neat PLA. Alkali-treated PLA/flax composites showed significant improvement in their tensile strength, elongation at break, and Young’s modulus at a 2.5 or 5% filler loading. An increase in the filler loadings caused a significant increase in the moisture absorbed, whereas the water contact angle decreased with an increasing filler concentration. Flax- and hemp-induced PLA-based composite films with 5 wt.% loadings showed a more stable compromise in all the examined properties and are expected to provide unique industrial applications with satisfactory performance.