Cellulose nanowhisker (CNW) reinforced polyvinyl acetate (PVAc) nanocomposites were prepared by melt-extrusion using a master batch process. Microscopy images showed no visible aggregation of whiskers in the matrix. The influence of CNWs and moisture absorption on the mechanical behavior of the nanocomposites was studied. The water sorption studies indicated low water uptake (<10 wt%) for all the materials. However, higher moisture uptake was obtained in the nanocomposites compared to the matrix though the diffusion co-efficient of the nanocomposites was lower. The tensile strength and modulus were decreased with the addition of CNWs to PVAc, but the reduction is lower at higher CNW concentration indicating that the plasticizing effect of the moisture was counteracted to some extent by the reinforcing effect of CNWs. Higher tensile ductility and toughness, which were dependent on moisture absorption, were achieved in the nanocomposites than pure PVAc.