Coir fiber/low density polyethylene (LDPE) composites were fabricated with different fiber loading (10-30 wt%) using compression molding technique. A fiber loading of 20 wt% was found optimum, with maximum mechanical properties. Further, the effect of fiber treatment (alkali and acrylic acid) and compatibilizer (MA-g-LDPE) incorporation on the mechanical and water absorption properties of the LDPE composites were studied and compared. The results showed that MA-g-LDPE incorporation into untreated and treated fiber composites led to improved mechanical properties and water resistance compared with the same composite formulation without MA-g-LDPE. However, treated fiber composites with MA-g-LDPE showed lower mechanical properties than untreated fiber without MA-g-LDPE, due to the removal of hydroxyl groups from the hemicellulose and lignin region of the fiber and degradation of fibers by chemical attack. From SEM studies on the tensile fractured composite samples, a good relationship has been observed between the morphological and mechanical properties.