Rice husk flour (RHF) biocomposites based on uncompatibilized and compatibilized recycled high density polyethylene/recycled polyethylene terephthalate (rHDPE/rPET) with ethylene‐glycidyl methacrylate (E‐GMA) copolymer were prepared through a two‐step extrusion and hot pressing with fiber loadings of 40, 60, and 80 wt %. Results showed that tensile and flexural properties increased. However, the elongation to break and impact strength decreased as the RHF loading increased. Compatibilizing polymer blend matrices can further enhance the mechanical properties. Water absorption (WA) test were examined in distilled and seawater. It is interesting to note that for composites made from uncompatibilized matrix, the calculated D and KSR were lower in seawater, but for the compatibilized matrix composites, the D and KSR obtained were generally lower in distilled water. However, compatibilization of rHDPE/rPET has been markedly reduced the WA and thickness swelling. Scanning electron microscope analysis of the compatibilized matrix composites confirmed the improved interfacial bonding of matrix–matrix and filler–matrix phases. © 2014 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2015, 132, 41494.