Composite panels were manufactured from waste wood and recycled, mixed plastics. The effects of key processing parameters including wood fibre content on the mechanical and physical properties of panels produced were evaluated. Chemical treatments of the recycled wood fibre were conducted to improve the dispersion and adhesion of fibres within the matrix. The morphology of the plastic/wood interface was examined critically using a scanning electron microscope (SEM). Experimental work on the hot processing of panels showed that a commercial high speed mixer, (K-mixer) failed to produce a uniform dispersion of the composite materials. The wet process studied presented a good option fro making composites from recycled wood and plastics. A significant improvement in bending strength and stiffness was observed for panels containing up to 60% wood fibre. However, because of the large amount of water required for the wet process, this technique was considered a less desirable approach. Dry processing appears to be the most environmentally sound method and produced panels with mechanical properties similar to those produced by the wet process. The SEM study on fracture interfaces elucidated the relationships between wood fibre/plastic matrix and mechanical properties of panels. Chemical treatments of recycled wood fibres were found to relieve the compatibility problem between wood and plastic, improving the adhesion between these components. Experimental work has also revealed that a commercial microwave generator can be employed to preheat mats prior to hot pressing.