Abstract: Plastic waste poses a significant environmental challenge, with global production exceeding 300 million tons annually and less than 10% being effectively recycled. The packaging sector, responsible for nearly half of all plastic waste, requires sustainable alternatives to mitigate pollution and reduce reliance on petroleum-based plastics. This project addresses this urgent issue by developing high-performance, biodegradable biocomposites utilizing three biopolymers – polyhydroxybutyrate (PHB), cellulose nanocrystals (CNCs), and lignin – extracted from forest residue biomass (FRB), a widely available yet underutilized resource in the Northern Forest region. The research seeks to answer: How can FRB be efficiently converted into value-added, biodegradable biocomposites for packaging applications? Specific objectives include (1) fractionating the biomass into its major constituents, (2) optimizing PHB production from hemicellulosic sugars, (3) synthesizing CNC from cellulose, (4) formulating and characterizing biocomposites with optimized mechanical and functional properties, and (5) evaluating the techno-economic feasibility of the proposed approach. The methodology combines biomass processing, polymer synthesis, material characterization, and TEA to ensure scalability and sustainability. Expected outcomes include a cost-effective, fully biodegradable alternative to conventional plastics, expansion of markets for woody biomass-derived materials, and enhanced economic opportunities for forestry and bioproduct industries. In the short term, this research will support sustainable packaging innovation, while in the long term, it will strengthen forest-based economies, reduce plastic waste, and promote environmental resilience in the Northern Forest region and beyond.