Polymer composites strengthened with natural fibers are much attractive than traditional component due to their availability, renewability, low weight and cost, low density, and biodegradability. There are a variety of natural fibers, such as coir, hemp, jute, and palm that can be applied as reinforcement or filler, showing potential as a replacement for inorganic fibers. Plastics are frequently somewhat cost-effective when making complex shapes, and the likelihood of obtaining composite ingredients with short demolding times, as no chemical reactions are required, makes them very attractive from an industrial standpoint. In this regard, the objective of this work was to prepare composites of polypropylene (PP) with two types of compatibilizers (maleated PP, PPM or maleated styrene ethylene-co-butylene styrene block copolymer, SEBSM) with varying amounts of 1, 3, and 5 wt% and different amounts of nanoclay, Cloisite 30B (1, 3, and 5 wt%) with peanut shell flour (PSF, 50 wt%) and evaluated the effect on mechanical properties, morphological, and dimensional stability. The addition of PSF to PPM increased the tensile strength and impact strength of the composite but the tensile modulus remained essentially unchanged. On the other hand, SEBSM had a large effect on impact strength but reduced modulus in addition to a small effect on tensile strength. Addition of both compatibilizers increased the impact strength, but did not decrease the tensile strength. Incorporation of cloisite 30B increases tensile modulus without reducing impact strength, the use of all three additives offers the possibility to produce natural fiber-plastic composites with high modulus and high impact strength.