This study focused on enhancing the mechanical properties and thermal stability of bio-composites with natural agricultural residues and improving the interfacial adhesion between polymer and biodegradable agricultural residual waste fibers. To achieve this purpose, we proposed superheated steam (SHS) treatment method as a novel pre-treatment of fiber for improved of compatibility in polymer matrix. The use of SHS-treatment was investigated as a method for improving interfacial adhesion between agricultural residual waste fibers and polymer and with the goal of enhancing mechanical properties. We selected wheat straw fibers for agricultural waste fibers to improve the surface modification. Wheat Straw Fibers (WSF) was treated with SHS in order to modify its characteristics for bio-composite applications. Treatment was conducted at temperatures 200oC and 230oC for each 1 h. SHS-treated WSF was evaluated for its chemical composition, thermal stability, morphology and crystallinity. Thermal stability of the fibers was investigated using thermogravimetric analysis and found that the degradation temperature of the fibers is increased after of the SHS treatment. In addition, SHS treatment contained in the WSF reduce the rate of hemicellulose components. The WSF is polar nature of lignocellulose due to the presence of hydroxyl and carboxyl groups in cellulose and hemicellulose causes it to be incompatible with non-polar thermoplastics. SHS-treatment was found to be able to remove hemicellulose, which is the most hydrophilic and most thermally unstable component in WSF, since it has the lowest thermal resistance. Removal of hemicellulose makes the fiber less hydrophilic and this will potentially increase the compatibility of treated WSF and polymers and improves the mechanical properties and water resistance of composites.