The demand for utilizing renewable resources based on bio‐sustainable materials has been rapidly increasing. One of the resources that are of great relevance to Thailand and the neighboring countries is the growth of palm oil and NR industries. In the palm oil industry, Palm stearin is derived from the refinery process of crude palm oil. The cost of palm stearin is cheaper when compared to their major components. The chemical constituents of palm stearin is very interesting. It can be used to synthesize a potential combatibilizer in the composite material. In this study, modified palm stearin was used as compatibiliser to promote the strain-induced crystallization for natural rubber (NR)/halloysite nanotubes (HNT) composites. It was varied in a range of 0.5 – 2 phr. The addition of modified palm stearin significantly facilitated strain-induced crystallization and enhanced the modulus and tear strength of the composites. This was clearly verified by the synchrotron wide angle X-ray scattering (WAXS) and IR spectrum. It proves that the modified palm stearin acts as a dispersant to improve the distribution of the HNT and also promotes the interaction between the NR and HNT through hydrogen bonding. Such corresponding interaction has greatly influenced on assisting the strain-induced crystallization of composites. The relationship between the stress-strain curves and the degree of crystallinity after straining provides further evidence on the observed findings.