Recently, Sugarcane bagasse fiber (SBF) is being used as a reinforcement material in the advancement of reinforced plastics for a variety of engineering applications. Thus, eco-friendly composites reinforced with sugarcane bagasse fiber-polyester (SBP) were prepared using compression molding process. The weight percentage of the fiber reinforcement was varied as 0, 5, 10 and 15%. The samples prepared to underwent morphological examination and to examine mechanical properties. The microstructure result shows that the good adhesion between fibers and matrix up to 15 wt% fibers in the composites and it is evident that the mechanical property improved due to the suitable adhesion of matrix and fiber. The tensile, compression and hardness properties of the composite increased with increasing percentage of the SBF up to maximum of 15 wt% fibers.