In this study, natural rubber (NR) and low-density polyethylene (LDPE) were melt blended in a 2-roll mill to fabricate NR/LDPE composites with liquid natural rubber (LNR) and hematite (a-Fe2O3) as compatibilizer and filler respectively. The effects of liquid natural rubber (LNR) on the mechanical properties and morphology of NR/LDPE composites were investigated. NR/LDPE composites were prepared in three different compositions of 70/30, 50/50 and 30/70, with filler content at varying concentrations (3, 5 and 7 g) while LNR was kept at 10 g for the modified composites. Results obtained showed increment in the tensile strength, tensile modulus, compressive and flexural properties but with decrease in the elongation at break the a-Fe2O3 and LDPE contents increase. The modification of the composites with LNR further enhanced the mechanical properties. FTIR spectrum of LNR revealed a peak at 3395 cm-1 suggesting the hydroxyl (OH) end group attached to the LNR chain due to the photochemical degradation of NR to yield LNR. FTIR spectra of the selected composites showed the presence of iron oxide bond (Fe-O) at 571 cm-1, 467 cm-1 and 463 cm-1 due to the incorporation of a-Fe2O3 filler particles in the composites. SEM images showed improved matrix/filler interfacial adhesion induced by the LNR compatibilizer.