Biodegradable polymeric membranes can reduce the environmental impact of polymer waste from discarded membranes used in water treatment and desalination. Poly(ε‐caprolactone) (PCL), a promising biodegradable material, faces limitations due to its hydrophobicity, affecting salt and contaminant adsorption. To overcome this, PCL was blended with oligomeric PCL‐diol (PCL‐D) in ratios of 90:10, 80:20, and 70:30. Additionally, 12 wt% laponite (Lap), an anionic synthetic clay, was incorporated to enhance mechanical strength and functionality. The addition of PCL‐D improved porosity, hydrophilicity, and antifouling properties, while Lap enhanced mechanical strength and performance. The pure water flux (PWF) increased from ~188 Lm−2 h−1 for neat PCL to 1124 Lm−2 h−1 for the 70:30 PCL blend with 12 wt% Lap (P7D3‐L12), and the water contact angle (WCA) decreased from ~96° to ~49°. The P7D3‐L12 membrane exhibited excellent adsorption of heavy metals (Pb2+ ~84.9 and Cd2+ ~90.6 mg/g) and dyes (MB ~45 and NR ~57 mg/g). It also showed ~36%–40% salt retention after multiple cycles and a fouling recovery rate (FRR) of ~82% after five cycles. Additionally, P7D3‐L12 demonstrated 78% weight loss in compost over 54 days, indicating enhanced biodegradability. These modified membranes offer a promising solution for sustainable water treatment.