In this study, a temperature sensitive shape memory polymer (SMP) system based on polylactic acid (PLA) has been developed and the effect of graphene nanoplatelets (GNPs) on the shape memory properties was evaluated. Dispersion of GNPs in PLA was improved with the aid of a zwitterionic surfactant. X-ray diffraction (XRD) and transmission electron microscopy (TEM) showed that the surface modified graphene nanoplatelets (SMGNPs) were exfoliated and homogenously dispersed in the PLA matrix due to enhancement of the polymer-graphene interaction. Mechanical properties of the samples namely stiffness and elasticity were increased upon incorporation of graphene nanoplatelets accompanied by their good dispersion in the PLA matrix. Furthermore, differential scanning calorimetry (DSC) revealed that the nucleation effect of graphene promote the crystallization and noticeably enhanced the degree of crystallinity. Finally, prominent mechanical properties along with high degree of crystallization due to fine dispersion of surface modified graphenes, resulted in drastic improvement in shape memory performance.