AbstractGreen composites are gradually replacing general plastics to achieve the aim of environment sustainability. In the present study, both compatibilized and uncompatibilized recycled polypropylene (RPP) and peanut shell powder (PSP) composites were prepared. The effect of various PSP loadings (0 to 40% by weight) on the processing, tensile properties, morphology, Fourier transform infrared (FTIR) analysis, and water uptake properties were examined. The results showed that the incorporation of PSP caused an increase in stabilization torque, tensile modulus, and water absorption, but lowered the tensile strength and elongation at break of the RPP/PSP composites. Compatibilized RPP/PSP composites with poly(ethylene-co-acrylic acid) (PEAA) significantly enhanced the tensile properties while decreasing the water absorption of RPP/PSP composites. FTIR analysis revealed a slight change in band positions and intensities, indicating a distinct interaction between the chains of polymers. SEM micrographs showed the interaction between PSP and the matrix.