Biofibers, natural lignocellulosics, have an outstanding potential as a reinforcement in thermoplastics. This study deals with tile preparation of lignocellulosic composites by reactive extrusion processing in which good interfacial adhesion is generated by a combination of fiber modification and matrix modification methods. PP matrix was modified by reacting with maleic anhydride and subsequently bonded to the surface of the modified lignocellulosic component, in-situ. The fiber surface was modified by reacting it with a silane in a simple and quick aqueous reaction system, similar to that employed for glass fibers. The modified fibers are then extruded with the modified polymer matrix to form the compatibilized composite. The various reactions between the lignocellulosic fiber/filler and modified polymer chains, is expected to improve the interfacial adhesion significantly as opposed to simple mixing of tile two components, since new covalent bonds between the fiber surface and matrix are created in the former case. These composite blends were then injection molded for mechanical characterization. Typical mechanical tests on strength, toughness and Izod impact energy were performed and the results are reported. These findings are discussed in view of the improved adhesion resulting from reactions and enhanced polar interactions at phase boundaries.