Wood filler is a porous and anisotropic material having different size, shape, and aspect ratio. The use of wood fillers such as wood particle, wood flour, and wood pulp in wood plastic composites (WPCs) are growing rapidly because these wood fillers give improved strength and stiffness to WPCs. However, the wood fillers have originally poor compatibility with plastic matrix affecting the mechanical properties of WPCs. Therefore, to improve compatibility between wood and plastic, numbers of physical and chemical treatments were investigated. While the various treatments led to improved performances in WPC industries using petroleum-based plastics, full biodegradation is still issues due to increased environmental concerns. Hence, bio-based plastics such as polylactide and polyhydroxybutyrate having biodegradable characteristics are being applied to WPCs, but relatively expensive prices of existing bio-based plastics prevent further uses. As conventional processing methods, extrusion, injection, and compression moldings have been used in WPC industries, but to apply WPCs to engineered or structural places, new processing methods should be developed. As one system, co-extrusion technique was introduced to WPCs and the co-extruded WPCs having core-shell structures make the extended applications of WPCs possible.