Windmill palm fiber, a high-quality cellulose resource, can be extracted from discarded palm sheath. However, its application in textile filling and composite reinforcement is limited due to its hydrophilic solid. In this paper, effects of chemical treatment such as alkali, acetyl chloride, and acetic anhydride treatment on the micro-morphology, water repellency, sound absorption, thermal conductivity and thermal stability of the windmill palm fiber were investigated. The results showed that the surface of windmill palm fiber treated by alkali was relatively smooth and compact. In comparison, the acetylation treatment destroyed the cell wall with micro-holes on the surface. Acetylation modification can significantly improve the water repellency of fibers. Furthermore, thewater static contact angle can be achieved 148o. Acetylation treatment improved the sound absorption performance of the fiber mat with an average sound absorption coefficient of 0.47, kept low thermal conductivity of under 0.050 W/(m℃), and improved the thermal stability with the initial decomposition temperature 356oC.