This research investigated the effects of a compatibilizer of maleated polybutadiene‐grafted polypropylene (MAPB‐g‐PP) on the properties of wood‐flour/polypropylene composites through the analysis of mechanical properties, water absorption, thermogravimetry, differential scanning calorimetry, and scanning electronic microscopy. The results demonstrate that the mechanical properties of composites were significantly increased; the thermal stability and water absorption were improved. The crystallization temperature and crystallinity were decreased. These improvements have been attributed to the strong interfacial interaction of MAPB‐g‐PP with both wood and polypropylene. J. VINYL ADDIT. TECHNOL., 26:17–23, 2020. © 2019 Society of Plastics Engineers