In order to improve the compatibility between natural fibers and polypropylene (PP) and polypropylene-ethylene propylene diene terpolymer (PP-EPDM) blends, the functionalization of both matrices with maleic anhydride (MA) is investigated in this study. The morphological observations carried out by scanning electron microscopy show that the incorporation of small amounts of functionalized polymer considerably improves the adhesion at the fiber-matrix interface. In these cases, the fibers are perfectly embedded in the matrix in relation to the composites prepared with the pure hornopolymers, and a significant increase in the composite strength is also observed, particularly, after the incorporation of both modified polymers (MAPP and MAEPDM). Thus, it is possible to correlate better interfacial adhesion with the improvement of mechanical properties. It is assumed that the functionalization of the matrix reduces interfacial stress concentrations and may prevent fiber-fiber interactions, which are responsible for premature composite failure. The crystallization kinetics of PP were also analyzed by differential scanning calorimetry (DSC). It was observed that both flax fiber and rubber behave as effective nucleant agents, accelerating PP crystallization. Moreover, these results are particularly relevant when the grafted matrices are added to the composite. (C) 2003 Wiley Periodicals, Inc.