Jute fibers were chopped to approximately 100 mm in length and then processed through a granulator having an 8-mm screen. Final fiber lengths were up to 10 mm maximum. These fibers along with polypropylene granules and a compatibilizer were mixed in a K-mixer at a fixed rpm. 5500, and dumped at a fixed temperature, 390°F, following single-stage procedure. The fiber loadings were 30, 40, 50, and 60 wt %, and at each fiber loading, compatibilizer doses were 0, 1, 2, 3 and 4 wt %. The K-mix samples were pressed and granulated. Finally, ASTM test specimens were molded using a Cincinnati injection molding machine. At 60% by weight of fiber loading, the use of the compatibilizer improved the flexural strength as high as 100%, tensile strength to 120%, and impact strength (unnotched) by 175%. Remarkable improvements were attained even with 1% compatibilizer only. Interface studies were earned out by SEM to investigate the fiber surface morphology, fiber pull-out, and fiber-polymer interface. © 1996 John Wiley & Sons, Inc.