Natural fibers such as bagasse, jute, sisal and coir are biodegradable as well as non-toxic in nature, so the use of natural fiber is safe. Bagasse contains about 50% cellulose, 25% hemicellulose, and 25% lignin. The present work has been undertaken to develop a composite using bagasse fiber as reinforcement and to study its mechanical properties, morphology, water absorption capacity and performance. The composites were prepared with different weight percentage of bagasse fiber by hand lay-up method. In the present research work, it can be concluded that with increase in wt.% of bagasse fiber in matrix material the rate of water absorption increases. Ultimate tensile strength, ultimate compressive and flexural strength of the composite are less than the pure epoxy while Young’s modulus is higher for composite. Ultimate tensile, ultimate compressive strength and flexural strength of composite is decreasing at all cross head speed with increase in wt.% of bagasse fiber while flexural strain is increasing. Scanning Electron Microscopy (SEM) showed that for 5 wt.% of bagasse fiber the binding between epoxy and bagasse fiber is better than the 10 and 15 wt.% of bagasse fiber configuration. This was because of the increase in wt.% of bagasse fiber, which results in cavities and improper binding in the composite domain. Thus, as we increase the wt.% of bagasse fiber it causes the decrease in mechanical properties of composite.