In this study, shape memory is thermally induced in a series of graphene oxide (GO) filled poly(lactic acid)/thermoplastic polyurethane (PLA/TPU) blends, prepared via melt mixing process, and their shape recovery and shape fixity are measured, and the results are correlated with morphology, dynamic mechanical properties, crystallinity and creep recovery behavior. Morphological analysis by scanning and transmission electron microscopy reveals that the blends are immiscible, and GO platelets are mainly localized in the TPU phase of the blends, which lead to smaller and more elongated TPU droplets with improved interfacial adhesion being responsible for the improved shape recovery performance compared to the unfilled blend. A systematic enhancement found in storage and Young's modulus, tensile strength, creep resistance and creep recovery, and cold crystallinity as a result of GO inclusion are in agreement with the improved shape recovery, shape fixity and overall shape memory performance of the filled systems. The developed PLA/TPU/GO nanocomposites with highly improved mechanical properties can be utilized as a new class of environmentally friendly shape memory materials for a broad range of applications.