Hierarchical arrangement of biological composites such as nacre and bone containing high filler (ceramic) content results in high strength and toughness of the natural material. In this study we mimic the design of layered bone microstructure and fabricate an optimal multifunctional bio-nanocomposite having strength, toughness and corrosion resistance. Poly (butylene adipate-co-terephthalate) (PBAT), a biodegradable polymer was used as a substrate material with the reinforcement of LDH (Layered double hydroxide) as a nanofiller in different concentrations to achieve enhancement in mechanical properties as well as processing related thermostability. Corrosion resistance was increased by mimicking a layered structured which incorporated a tortuous diffusion path.