In this article, the effect of the addition of halloysite nanotube (HNT) on the mechanical and thermal stability of polypropylene (PP) and PP/kenaf fiber biocomposites has been investigated. Different volume contents of HNTs ranging from 1 to 10 vol.% were melt mixed with PP and PP/kenaf fibers. The volume content of kenaf fibers was kept constant at 30%. The morphology of HNTs within the PP matrix has been studied via scanning electron microscopy (SEM). The morphological results revealed that HNT was uniformly dispersed in the PP matrix already at a low concentration of 1 and 2 vol.%. The mechanical properties of the manufactured nanocomposites and hybrid biocomposites such as Young’s modulus, tensile strength, elongation at break, flexural modulus, flexural strength, and notched Izod strength have been measured. The results show that Young’s modulus and strengths have been improved along with the addition of low content of HNTs. Moreover, the gain of notched Izod impact strength obtained by the addition of short kenaf fibers was maintained in hybrids with low concentrations of HNTs. Finally, the thermogravimetric analysis shows that at 10% and 50% weight loss, the thermal degradation rate of the PP and PP/kenaf biocomposites decreased by the addition of HNTs.