A series of composites based on polylactide (PLA), have been prepared by melt-blending with multiwalled carbon nanotubes (MWNT) and Tri(1-hydroxyethyl-3-methylimidazolium chloride) phosphate (IP) functionalized MWNT (MIP). The morphology, thermal stability and burning behavior of the composites were investigated by Field Emission Scanning Electron Microscopy (FESEM), Thermogravimetric Analysis (TGA) and Cone Calorimeter Test (CCT), respectively. Significant improvement in fire retardant performance was observed for the PLA/MIP composite from CCT (reducing both the heat release rate and the total heat release) and TGA (increasing the char residue) compared to PLA/MWNT. SEM and Raman spectroscopy were utilized to explore the surface morphology and chemical structure of the char residues. It revealed that the catalytic charring effect of IP, the physical crosslinking effect of MWNT, and the combined effect of both IP and MWNT (forming continuous and compact char layers) were very efficient in improving the flame retarding properties of PLA/MIP composite.