Poly(propylene carbonate) (PPC) is a new biodegradable aliphatic polycarbonate. However, the poor thermal stability, low glass transition temperatures (T g ), and relatively low mechanical property have limited its applications. To improve the thermal and mechanical properties of PPC, functionalized graphite oxide (MGO) was synthesized and mixed with PPC by a solution intercalation method to produce MGO/PPC composites. A uniform structure of MGO/PPC composites was confirmed by X-ray diffraction and scanning electron microscope. The thermal and mechanical properties of MGO/ PPC composites were investigated by thermal gravimetric analysis, differential scanning calorimetric, dynamic mechanical analysis, and electronic tensile tester. Due to the nanometer-sized dispersion of layered graphite in polymer matrix, MGO/PPC composites exhibit improved thermal and mechanical properties than pure PPC. When the MGO content is 3.0 wt %, the MGO/PPC composites shows the best thermal and mechanical properties. These results indicate that nanocomposition is an efficient and convenient method to improve the properties of PPC.