The instrumented Izod and Charpy tests were performed on the sawdust-polypropylene (PP) composites to study the nature of impact resistance in the thermoplastic wood composites. The notched Izod strength was found to increase with filler content in composites containing the Maleic-anhydride-grafted PP (MAPP) additive. The Izod strength even exceeds that of the neat matrix resin at higher filler contents, indicating a methodology for applying the recycled PP and also for reinforcing the thermoplastics with wood powders. While the static tensile results show evidences for the reinforcing role of the wood filler, a fracture mechanics characterization through the Charpy impact tests effects of MAPP under the impact loading rates. The choice of MAPP as the additive was discussed accordingly for application of the sort of materials.