The interface design based on microencapsulated wood particle in wood‐polypropylene‐composites (WPCs) was reported via in situ emulsion polymerization of butyl‐acrylate (BA)/methyl methacrylate (MMA). SEM images, FTIR spectra, and surface parameters proved microencapsulation efficiently. With compatible‐crosslinking network on wood surface, wood polypropylene composite was reinforced. For hydrophobic interface, by soaking for 72 h, water absorbance of wood–polypropylene composite decreased from 16.7 to 0.17 wt%. As well as flexural strength and tough parameters, tensile strength reached 37.39 MPa which was enhanced by about 83%. Viscoelastic properties showed microencapsulated effect enhanced the storage modulus of composites and the glass‐transition temperature (Tg) of polymer components. Ascribing to microencapsulated crosslinking interactions and weak chain‐motions, the melting enthalpy and initial decomposition temperature (Td) of wood–polypropylene composite were also improved. To wood (adopting 72.9 wt% rigid MMA)‐polypropylene composite, initial Td was improved from 248 to 356°C. POLYM. COMPOS., 39:427–436, 2018. © 2016 Society of Plastics Engineers