The environmental degradation behaviour of flax fibres and their polymer composites are explored. New upgraded Duralin flax fibres, which have been treated by a novel treatment process for improved moisture and rot sensitivity were studied. Environmental studies showed that these upgraded Duralin flax fibres absorb less moisture than untreated Green flax fibres, whereas the mechanical properties of the treated fibres were retained, if not improved. The effect of this novel flax fibre treatment on the environmental behaviour of natural-fibre-mat-reinforced thermoplastics (NMTs) is investigated by monitoring the moisture absorption and swelling, and measuring the residual mechanical properties of the flax/polypropylene composites at different moisture levels. The moisture absorption and swelling of the upgraded flax fibre composites is approximately 30% lower than that of composites based on Green flax fibres.