Abstract Wood fibers with high lignin content show promise to function in numerous applications with advantageous properties if the fiber features are appropriately exploited. The present study introduces a new approach to disintegrate and disperse wood fibers from groundwood pulp (GWP) directly to polyol without additional solvent exchanges or chemical modifications. In comparison bleached chemical pulp with low lignin content was ground in the polyol, but only low consistency (1 wt%) operation was possible, whereas up to 5 wt% consistency with GWP was carried out with ease. The micron sized fibers in polyol were reacted with polymeric diphenylmethane diisocyanate to produce fiber reinforced biopolyurethane (bioPU) composites. The mechanical properties of the composites improved compared to reference bioPU showing 14.6% increase in Young’s modulus, 54.5% in tensile strength and 26.1% in strain at break. The tan δ peaks shifted to higher temperature from 5.5 to 10.4 °C when fibers up to 5.1 wt% were incorporated to bioPU. Overall, the bulk microfibers from GWP with low degree of processing were cost-effective reinforcements for bioPUs, which improved the qualities of the fabricated composites and showed good compatibility with polyurethane.