Composites with polypropylene (PP) and lyocell fibers were manufactured by compression molding technique. In order to improve the interfacial adhesion between the natural fibers and thermoplastic matrix during manufacturing, maleic anhydride grafted polypropylene (MAPP) as a coupling agent has been employed. Physical properties such as void contents and water absorption rate were studied. Tensile and flexural tests were carried out to evaluate the composite mechanical properties. Tensile test results showed the higher strength and modulus of composite than pure polypropylene (PP). In addition, strength and modulus were found to be influenced by the variation of MAPP contents (1%, 2%). Unlike tensile properties, flexural properties were not improved. However, between 1 and 2 wt% MAPP content, the composites containing 2 wt % MAPP showed better flexural properties than 1 wt % MAPP.