Several biomedical products, like scaffolds, implants, prostheses, and orthoses, require materials having superior physicochemical and biological properties. Polyethylene terephthalate glycol (PETG) is being increasingly used for various biomedical applications. There are a few studies on PETG-based composites, however, natural fibers like silk short fibers reinfored PETG composites have not been attempted. Being a cost-effective widely available material, PETG-Silk combination can be potential biocomposite for several biomedical applications. Here, we report a novel short silk fiber reinforced PETG composite prepared by a wet-mixing route, ensuring homogenous dispersion of the filler. Different ratios (2-10%) of short silk fibers were used to prepare composites with varied compositions. The mechanical, physicochemical, and biological properties of the prepared composites were analyzed. Thermogravimetric analysis showed that such composites are thermally stable up to 390 °C and can be used for thermal extrusion-based manufacturing. The tensile modulus of the samples increased with fiber content; however, the failure strain reduced with fiber content. Furthermore, upon annealing, the tensile modulus increased but, the failure strain of the composites decreased, XRD study revealed that heat treatment has altered the crystalline nature of the composites. Finally, we evaluated the cytocompatibility of the prepared composites to assess their suitability for various biomedical applications.