Polymer waste recycling is a major technical problem, because large amounts of synthetic polymers are produced every day and polymeric wastes are gathered from municipal solid wastes. There are a few polyolefins, such as polyethylene (PE) and polypropylene (PP) with huge amounts of paper in the waste materials. In order to recycle the commingled plastics waste that contains paper, hydrolytic treatment is needed prior to conventional processing. In this project, the optimum conditions of hydrolytic treatment of paper and the mechanical properties and morphological state of different compositions of PP high-density PE (HDPE) blends with paper were studied. Ethylene-propylene-diene copolymer (EPDM) was added to improve the mechanical properties of blends. The results show that the hydrolytic treatment of paper improves the mechanical properties, such as the tensile strength and modulus of the PP/HDPE/paper composites relative to the untreated samples, and up to 30% paper can be added to commingled PP and HDPE blends. The EPDM was used as an impact modifier. The plastics waste containing paper can be used in applications such as artificial wood.