Summary: This paper presents the results of an experimental investigation concerning the use of an ethylene butyl acrylate and glycidyl methacrylate (EBAGMA) terpolymer as an interfacial agent for isotactic poly(propylene)/wood flour (iPP/WF) composites at various filler ratios (10, 20 and 30 wt.‐%). The effects of the EBAGMA terpolymer on the morphology, tensile properties, impact strength and water uptake of the iPP/WF composites were studied and the results were compared with those obtained with maleated poly(propylene) (MAPP) used as a compatibilizer. Initially, the mixing process was performed in a calendaring unit at 170 °C for pre‐homogenization of the filler in the matrix. Composites made out of these combinations were then ground and injected into a standard mold at 180 °C in the absence and the presence of compatibilizer. The results indicated that both EBAGMA terpolymer and MAPP improved the interactions between iPP and WF, and induced a better dispersion of wood particles in the polymer matrix, as revealed by scanning electron microscopy (SEM). Furthermore, tensile properties and impact strength were also increased. Another important effect was on the water absorption property, which was significantly lower for the samples with EBAGMA and MAPP. However, EBAGMA terpolymer produced better enhancement of the properties of the iPP/WF composites compared to the compatibilized samples with MAPP.