The properties of wood composites consisting of low density polyethylene (LDPE) and wood flour (WF) were studied. In an attempt to improve the interfacial adhesion between hydrophobic LDPE matrix and the hydrophilic WF filler, a styrene-butadiene-styrene (SBS) copolymer was added as a compatibilizer. The interaction between LDPE and wood was investigated for PE/WF- and PE/WF/SBS-composites. The experimental measurements were conducted by conventional mechanical testing and Scanning Electron Microscopy (SEM). The interaction between polystyrene and wood in PS/WF composites was also studied by SEM and by Dynamic Mechanical Thermal Analysis (DMTA). PE/WF/SBS composites showed higher maximum tensile stress and strain at failure than the composites without SBS. SEM fractography confirmed better adhesion between the PE matrix and wood particles when SBS was present. DMTA measurements confirmed molecular interaction between PS and wood, the glass transition (Tg) peak of PS moved towards the Tg peak of cellulose