Biodegradable nanocomposites based on 5 wt% cellulose nanowhiskers (CNW) and polylactic acid (PLA) were prepared using an extrusion process. An anionic surfactant (5, 10, and 20 wt%) was used to improve the dispersion of the CNW in the PLA matrix. The results showed that increased surfactant content resulted in improved dispersion but at the same time degraded the PLA matrix. The results from mechanical testing showed a maximum modulus for the composite with 5 wt% surfactant and as the surfactant content increased, the CNW dispersion improved and the tensile strength and elongation at break was improved compared to its unreinforced counterpart.