Abstract Basalt fibres are natural mineral fibres increasingly finding application in re-enforcement of polymers. In this study, normal melt extrusion and water-assisted extrusion were compared for their effectiveness in preparing polyamide (PA)/basalt fibre composites in a co-rotating twin screw extruder. The influence of chopped fibre initial length and content and compatibilizer type and content on the structure and properties of the PA/basalt fibre composites were determined. The structures of the composites were evaluated via scanning electron microscope. Better adhesion was realised for systems with coupling agent. In addition, the mechanical properties improved with an increase in the compatibilizer content and basalt fibre content. Water-assisted processing method resulted in lower specific mechanical energy input to the composites due to plasticisation by water. The composites prepared via water assisted technique showed slightly better thermo-mechanical performances and therefore could be recommended for the preparation of PA/basalt fibre composites. Keywords: Basalt fibre, polyamide, water-assisted extrusion