Wood-plastic material from a novel reactive processing method (co-refining by steam-explosion) was investigated by C-13 solid state nuclear magnetic resonance (NMR) and dynamic mechanical analysis (DMA). NMR spectra indicated chemistry of the material changed as a result from co-steam-explosion. It was also observed from NMR analysis that the crystallinity of the cellulose increased in the presence of iPP during steam-explosion co-processing. By using variable contact time cross pulse experiments, the relaxation parameters (T-CH and T-1p) for the constitutive components were evaluated to reveal the level of interactions. T-1p values for steam-exploded wood had values similar to those published in literature, which are independent relaxation values for lignin and cellulose. However, for co-steam-exploded wood and iPP, the independent value of lignin relative to the amorphous cellulose was absent. It is proposed that lignin adopts an alternate arrangement during co-steam-explosion processing. This arrangement is transient because the independent relaxation of lignin is recovered after the application of heat during compression molding. DMA demonstrated a mechanical reinforcing effect of the steam-exploded wood without influencing the glass transition of polypropylene for the compression molded co-steam-exploded sample. The paper concludes by describing a hypothetical scheme for a meta-stable interaction of wood bio-polymers and iPP.