The accumulation of nonbiodegradable petrochemical-based polymers in the environment motivates the development and use of low-cost, eco-friendly, and biodegradable polymers. A series of biodegradable poly(butylene adipate-co-terephthalate) composites reinforced by sustainably sourced nanochitin were successfully prepared using melt blending and compression molding methods. Structural, thermal, and mechanical characterizations of poly(butylene adipate-co-terephthalate) (PBAT)/nanochitin composites were performed. SEM revealed that the nanochitin was uniformly dispersed throughout the PBAT matrix at low contents (<2 wt %), while DSC analyses revealed a corresponding increase in the crystallinity (32.6% enhancement) of the PBAT matrix. The tensile strength and elongation at break of the PBAT/nanochitin composite containing 0.5 wt % nanochitin were higher by 82.5 and 64.2%, respectively, compared with pristine PBAT. The Chitin-0.5 composite also showed improved thermal stability compared with PBAT (the char yield improved by 8%) due to the uniform dispersion of nanochitin in the PBAT matrix. The enhanced performance of the PBAT/nanochitin composites, prepared without an added compatibilizer, informs the development of improved biodegradable PBATbased polymers.