AbstractIn this article, to explore the utilization of bio‐based epoxy resin in the preparation of sizing agents for carbon fibers (CFs), a bio‐based epoxy emulsion (S‐P‐S) derived from spiro diacetal epoxy (SDE) resin was prepared and compared to the traditional diglycidyl ether of bisphenol A (DGEBA) based emulsion (D‐P‐D) and a mixed emulsion of S‐P‐S and D‐P‐D (S‐P‐S&D‐P‐D). The CF sized with S‐P‐S (CF‐(S‐P‐S)) showed improved surface oxygen content (22.86%) and roughness (40.9 nm), enhancing wettability and interfacial bonding between the fiber and the matrix. Nanoindentation test and AFM results showed the enhanced interfacial stiffness and a gradual modulus interphase with a thickness of 381 nm in CF‐(S‐P‐S) reinforced epoxy resin composite (CF‐(S‐P‐S)/EP). Therefore, the resulting CF‐(S‐P‐S)/EP composite possesses the best mechanical properties, with the transverse fiber bundle tensile (TFBT) strength of 27.3 ± 1.45 MPa and the interfacial shear strength (IFSS) of 85.6 ± 8.26 MPa. These results highlight the potential of the SDE‐based emulsion (S‐P‐S) to enhance the interfacial properties and mechanical performance of CF/EP composite, offering a sustainable alternative to conventional petroleum‐based epoxy resins.Highlights Emulsion (S‐P‐S) was prepared using spiro diacetal epoxy (SDE) for carbon fiber sizing. Properties of S‐P‐S sized CF (CF‐(S‐P‐S)) and its composite were evaluated. Spiro diacetal structure created a gradual modulus interphase in CF‐(S‐P‐S)/EP. The interfacial properties of the CF‐(S‐P‐S)/EP composite were greatly improved. Bio‐based SDE resin showed promise for optimizing carbon fiber composite interphase.