Systemic studies of the effects of the concentrations of maleated polyethylene (MAPE) loading, the content and addition sequence of dicumyl peroxide, the content and type of nanoclay (NC), and aspen fiber loading on the mechanical properties of PE-aspen composites were undertaken with the objective to increase the impact strength as well as the tensile properties. In this article, the formation of an optimal compatibilizing system for the hybrid composite PE-aspen-NC by combining basic principles for compatibilization was investigated. Statistical approach experimentation using Statgraphics Centurion Õ with the objective to maximize both the tensile strength as well as the impact properties of natural fiber and nanoclay filled PE was applied to reach values well above that of virgin PE.