Raw chrysotile fiber (ChF) was dispersed in water through surfactant-decoration and vibromill-shearing process. Wood flour (WF) pretreated by the coupler was added into ChF/water mixture while high-speed stirring. After oven-dry, the WF/ChF mixture was filled in polypropylene (ChF/WPC) employing hot-press molding technique. Optical microscopy (OM) was employed to observe the dispersion of ChF in both water and WPC matrix. Mechanical and flame-retardant behaviors of ChF/WPC were further studied to verify the effectiveness of dispersion method of ChF. ChF can be well dispersed in water with SDBS penetrating and vibromill treatment from OM observation. The mechanical and fire-resisting properties of ChF/WPC are improved comparing with the plain WPC, there exists 59.72% increment in flexural strength of ChF/WPC with 10% ChF addition, and 61.97% increment in flammability retardant of ChF/WPC with 15% ChF addition.