This paper deals with (maleic anhydride)‐grafted polypropylene (MAH‐g‐PP) and wood flour reinforcement and their effects on the dynamic, mechanical, morphological, and rheological properties of waste polypropylene (PP) composites. MAH‐g‐PP was used as a compatibilizer to improve the physical interaction between the filler and matrix. The composites were prepared by using a twin‐screw extruder followed by injection molding. Thermal stability and mechanical properties of the compatibilized system increased as compared to their values for the uncompatibilized system. Also, nearly 60% and 30% loss was found for mechanical properties and weight loss, respectively, in a biodegradability study. J. VINYL ADDIT. TECHNOL., 20:24–30, 2014. © 2014 Society of Plastics Engineers