Rapid consumption of petroleum‐based polymers has resulted in the growth of global production but such polymers have a limited source and slow degradation rate. Biopolymers are an alternative sustainable material that can be synthesized using natural sources. In this study, a starch‐based biopolymer composite is synthesized using various concentrations of iron oxide as a binder. A decreased absorption of water is found with an increase in binder concentration. The swelling (absorption) and shrinking (desorption) behaviors of biopolymers are studied as a function of pH, sodium chloride salt, and alcohol (methanol and ethanol). The diffusion model is used to study the absorption and desorption behavior of the biopolymer. Electron microscopy and elemental analysis find iron and oxygen atoms at the composite surface. Fourier transform infrared spectroscopy and X‐ray diffraction confirm that iron oxide is bound with starch. The mechanical hardness of the biocomposites is studied at varied of binder concentrations. This biocomposite can be utilized in packaging, electronics, sensor, and biomedical applications.