Native potato starch has been modified with allylglycidyl ether (AGE) under various reaction conditions including different sodium hydroxide and AGE concentrations, reaction temperatures and times. 1H-NMR and FT-IR were used to analyze the products. AGE-modified starch, with two degrees of substitution (DS), namely DS = 1.3 and DS = 2.3, was synthesized and used for preparation of a new family of crosslinked composites reinforced with various amounts of bleached softwood fibres. Composite premixes of modified starch, wood fibres and ethylene glycol dimethacrylate (EGDA) were cured in a hot press using 2% (w/w) of benzoyl peroxide at 150°C under high pressure for 10 min. The matrix with high degree of substitution exhibited good processability and was easily processed even for the highest fibre contents, up to 70% (w/w). In addition, scanning electron micrographs showed good dispersion and adhesion between the starch matrix with high degree of substitution and fibre. The original poor mechanical properties of the cured modified starch were markedly improved by the addition of wood fibres. In the extractions tests cured high-DS and low-DS composite samples showed weight losses in the range of 1 and 15% (w/w), respectively. No unreacted crosslinker ethylene glycol dimethacrylate was detected in the solutes as determined by NMR.