Partially biodegradable polymer nanocomposites Poly(3-Hydroxybutyrate) (PHB)/MultiwalledCarbon Nanotubes (MWCNTs)/Poly(Methyl Methacrylate) (PMMA)and non-biodegradable nanocomposites (MWCNTs/PMMA) were synthesized, and their thermal, electrical, and ammonia-sensing properties were compared. MWCNTs were chemically modified to ensure effective dispersion in the polymeric matrix. Pristine MWCNTs (p-MWCNTs) were functionalized with –COOH (a-MWCNTs) and amine groups (f-MWCNTs). Then, PHB grafted multiwalled carbon nanotubes (g-MWNTs) were prepared by a ‘grafting to’ technique. The p-MWCNTs, a-MWCNTs, f-MWCNTs, and g-MWCNTs were incorporated into the PMMA matrix and PMMA/PHB blend system by solution mixing. The PHB/f-MWCNTs/PMMA blend system showed good thermal properties among all synthesized nanocomposites. Results from TGA and dTGA analysis for PHB/f-MWCNTs/PMMA showed delay in T5 (about 127°C), T50 (up to 126°C), and Tmax (up to 65°C) as compared to neat PMMA. Higher values of frequency capacitance were observed in nanocomposites containing f-MWCNTs and g-MWCNTs as compared to nanocomposites containing p-MWCNTs and a-MWCNTs. This may be attributed to their excellent interaction and good dispersion in the polymeric blend. Analysis of ammonia gas-sensing data showed that PHB/g-MWCNTs/PMMA nanocomposites exhibited good sensitivity (≈100%) and excellent repeatability with a constant response. The calculated limit of detection (LOD) is 0.129 ppm for PHB/g-MWCNTs/PMMA, while that of all other nanocomposites is above 40 ppm.