The main goal of this work was to assess the technical feasibility of palm rachis (PR) as a reinforcing agent in the production of wood–plastic composites. Recycled linear low-density polyethylene/PR fiber composites were prepared at constant content (3 phc (per hundred compounds)) of maleic anhydride-grafted polyethylene as compatibilizer by melt blending method utilizing a two-roll mill and compression molding. The effect of nanosilica (NS), nanoclay (NC), and hybrid nanoparticles (NSNC) at different concentrations (2, 4, and 6 phc) on mechanical, physical, thermal, and morphological properties was investigated. The results of mechanical properties measurements demonstrated that when 6 phc NS, 4 phc NC, and 4 phc NSNC were added, tensile, modulus strength, and hardness reached their optimum values. At a high level of NC loading (6 phc), the increased populace of NC layers led to agglomeration and stress transfer gets restricted. Elongation at break and Izod impact strength were decreased by the incorporation of different nanoparticles. Water absorption and thickness swelling of prepared composites were found to decrease on the incorporation of NS and NC. In addition, the thermal stability showed slightly improved by the addition of nanoparticles, but there are no perceptible changes in the values of melting temperature by increasing the content of NS and NC or NSNC. Scanning electron microscopy study approved the good interaction of the PR fibers with the polymer matrix as well as the effectiveness of NS and NC in the improvement of the interaction. The finding indicated that wood–plastic composite treated by NS had the highest properties than other composites.