Polycaprolactone is biodegradable, semicrystalline polymer with low melting point which allows it to be simple processing. It is most often used in the field of biomedicine with an emphasis on tissue engineering. Although it has exceptional physical and biological properties, various fillers are added to PCL to improve the thermal and mechanical properties. In this paper, the influence of Fe2O3 filler on the PCL polymer properties was investigated. The samples of PCL polymer and PCL/Fe2O3 composites were prepared by mixing PCL with different amount of Fe2O3 filler, φ = 0,1; 0,3; 0,5; i 1,0 % in the melt, on twin-screw extruder. By measuring the contact angle, the surface free energy and thermodynamic work of adhesion of the samples were determined. Thermal properties were determined by differential scanning calorimetry (DSC), measuring thermal conductivity and thermogravimetric analysis (TGA). The mechanical properties were determined by a tensile test. Results showed that addition of Fe2O3 filler stimulates crystallization of PCL polymer as the enthalpies of melting and crystallization increase in all composite systems and that the thermal conductivity of composites increases compared to the PCL matrix. Results of TG analysis showed that addition of the filler improves thermal stability of PCL matrix especially at the beginning of thermal decomposition. The work of adhesion shows an increase in all composite systems, which indicates the existence of interactions on the matrix/filler interface. In the case of mechanical properties, no significant effect was observed with the filler addition in PCL matrix.