In the present work, different compatibilizers, namely polyethylene-graft-maleic anhydride (PE-g-MA), polypropylene-graft-maleic anhydride (PP-g-MA) and polystyrene-block-poly(ethylene-ran-butylene)-block-polystyrene-graft-maleic anhydride (SEBS-g-MA) were used on green composites derived from biobased polyethylene and peanut shell flour to improve particle-polymer interaction. Composites of high-density polyethylene/peanut shell powder (HDPE/PNS) with 10 wt% peanut shell flour were compatibilized with 3 wt% of the abovementioned compatibilizers. As per the results, PP-g-MA copolymer lead to best optimized properties as evidenced by mechanical characterization. In addition, best particle-matrix interface interactions with PP-g-MA were observed by scanning electron microscopy (SEM). Subsequently HDPE/PNS composites with varying peanut shell flour content in the 5 -30 wt% range with PP-g-MA compatibilizer were obtained by melt extrusion and compounding followed by injection molding and were characterized by mechanical, thermal and morphological techniques. The results showed that peanut shell powder, leads to an increase in mechanical resistant properties (mainly, flexural modulus and strength) while a decrease in mechanical ductile properties i.e. elongation at break and impact absorbed energy is observed with increasing peanut shell flour content. Furthermore, peanut shell flour provides an increase in thermal stability due to the natural antioxidant properties of peanut shell. In particular, composites containing 30 wt% peanut shell powder present a flexural strength 24% and a flexural modulus 72% higher than the unfilled polyethylene and the thermo-oxidative onset degradation temperature is increased from 232 ºC up to 254 ºC thus indicating a marked thermal stabilization effect. Resultant composites can show a great deal of potential as base materials for wood plastic composites.3