In this present work hybrid polymer (epoxy) matrix composite has been strengthened with surface modified E-glass fiber and iron(III) oxide particles with varying size. The particle sizes of 200 nm and <100 nm has been prepared by high energy ball milling and sol-gel methods respectively. To enhance better dispersion of particles and improve adhesion of fibers and fillers with epoxy matrix surface modification process has been done on both fiber and filler by an amino functional silane 3-Aminopropyltrimethoxysilane (APTMS). Crystalline and functional groups of siliconized iron(III) oxide particles were characterized by XRD and FTIR spectroscopy analysis. Fixed quantity of surface treated 15 vol% E-glass fiber was laid along with 0.5 and 1.0 vol% of iron(III) oxide particles into the matrix to fabricate hybrid composites. The composites were cured by an aliphatic hardener Triethylenetetramine (TETA). Effectiveness of surface modified particles and fibers addition into the resin matrix were revealed by mechanical testing like tensile testing, flexural testing, impact testing, inter laminar shear strength and hardness. Thermal behavior of composites was evaluated by TGA, DSC and thermal conductivity (Lee's disc). The scanning electron microscopy was employed to found shape and size of iron(III) oxide particles adhesion quality of fiber with epoxy matrix. Good dispersion of fillers in matrix was achieved with surface modifier APTMS. Tensile, flexural, impact and inter laminar shear strength of composites was improved by reinforcing surface modified fiber and filler. Thermal stability of epoxy resin was improved when surface modified fiber was reinforced along with hard hematite particles. Thermal conductivity of epoxy increased with increase of hematite content in epoxy matrix. (C) 2016 Elsevier B.V. All rights reserved.