The present study was carried out to investigate the effect of material‐blending method and filler content on the physical and mechanical properties of medium density fiberboard (MDF) dust/PP composites. In the sample tests preparation, 40, 50, and 60 wt % of MDF dust were used as lignocellulosic material. Test samples were made to measure the influence of material‐blending method and MDF dust content on water absorption (WA), thickness swelling (TS), modulus of elasticity (MOE), modulus of rupture (MOR), tensile strength, tensile modulus, and withdrawal strengths of fasteners. The mechanical properties of the test panels significantly decreased with increasing MDF dust contents due to the reduction of interface bond between the fiber and polymer matrix. The WA and TS values also increased by increasing the amount of MDF dust. So with the increase in the MDF dust content, there are more water residence (high hydroxyl groups (OH) of cellulose and hemicelluloses) sites, thus more water is absorbed, so it can reduce mechanical strength. Furthermore, the results indicated that the physical and mechanical properties of samples made with melt‐blend method were more acceptable than those of dry‐blend method. Field emission scanning electron microscopy micrographs also showed that the polymer and the filler phase mixed better in the melt‐blend method. On the basis of the findings of this research, it appears evident that certain amount of MDF dust material with suitable material‐blending method can be used in manufacturing of wood–plastic composites for providing good physical and mechanical properties. © 2014 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2014, 131, 40513.