Among the environmental concern, tire rubber has become a significant problems because its non-biodegradable character due to crosslinked network and caused the waste rubber accumulation. Ground Tire Rubber (GTR) or crumb rubber is the recycled waste tire rubber in a small size that can be incorporated as raw materials with Wood flour (WF) and virgin or waste polyolefin such as PP and HDPE in order to obtain a new type of rubber wood plastic composite with improved the impact properties and toughness when compared with conventional. In this studied, Polypropylene (PP) was used as a polymer matrix filled with WF and GTR in different ratios by varied the composition of polymer matrix to fillers in 60:40 and 70:30 and then varied fillers for 1:3 1:1 and 3:1 of WF to GTR in all compositions. The specimens were prepared by extrusion and injection techniques. The results showed that the density of composite materials is reduced when compared with neat PP showed the lightweight materials were obtained. The morphology showed incompatible between polymer matrix and fillers due to the different hydrophobicity of polymer matrix and hydrophilicity of fillers and it can be effected to the overall mechanical properties that slightly dropped from those of neat PP but the impact properties were improved when increased GTR. Polypropylene-grafted-Maleic anhydride (PP-g-MA) was selected as the compatibilizer between fillers and polymer matrix. Esterification reaction and H-bond occurred at hydroxyl group (-OH) on the interface of the cellulosic wood flour and surface of GTR to improve the compatibility and higher miscibility between polymer and fillers. The composition of PP (70) to fillers (30) and WF to GTR (1:3) was chosen to improve the miscibility and compatibility by the PP-g-MA. From SEM result showed that the presence of PP-g-MA, the matrix-filler interface was improved and increased the strength of composite materials.