As a high technique environmental friendly material, Wood-plastic composite (WPC) material has wide range of applications and is extruded by recycled wood fiber products and wasted LDPE. Waste Paper-Al-Plastic materials including Tetrapak beverage and milk boxes are used to extrude the WPC as thermal insulation exterior wallboard instead of normal wood fiber material in the present research. In this paper, simulated thermal insulation and Oxygen index combustion test were operated at the Lab conditions. Some experimental results are presented as follow: heat transfer coefficient of 100mm thick WPC hollow wall is 0.922 W/m2•K, which is equivalent to the thermal insulation performance of a 0.35m thick fly ash aerated concrete block. Oxygen index of 27 indicates that WPC is inflammable material. Zinc borate (ZB) and ammonium polyphosphate (APP) are effective flame retardant for Paper-Al-Plastic WPC.