A maleic-anhydride-grafted styrene-ethylene-butylene-styrene (SEBS-MA) triblock copolymer has been used as a compatibilizer in low-density polyethylene-wood flour (LDPE-WF) composite system. The location of compatibilizer was studied using transmission electron microscopy (TEM). The unsaturated parts of the copolymer were stained with osmium tetraoxide (OsO4) to enhance contrast between the different phases. TEM micrographs indicated that part of the compatibilizer was located at the interface between the wood particles and PE matrix and that wood was also stained by the OsO4. The nature of the interface between the wood surface and the SEBS-MA was studied using Fourier transform infrared spectroscopy (FTIR). The results indicated that MA reacts with wood through esterification and hydrogen bonding and also possibly through interaction between the styrene and wood.