Study was made of the compatibilization of polyethylene/aluminum hydroxide (PE/ATH) and polyethylene/magnesium hydroxide (PE/MH) composites with composition 60/40 wt%. Compatibilizers were hydroxyl or carboxylic acid functionalized copolymers prepared in our laboratory with metallocene catalysts and commercial butyl acrylate, maleic anhydride, epoxy, and acrylic acid functionalized polyethylenes. Comparison was made with stearic acid treatment of the composites. The effect of polymeric compatibilizers on the properties of the composites was studied by tensile and impact tests, dynamic mechanical analysis, differential scanning calorimetry, morphology studies, and flammability tests. Adhesion of the PE/ATH and PE/MH composites was significantly improved, as seen in morphology studies in the changed fracture mechanism. The improved adhesion was particularly reflected in the mechanical properties: an improvement in both stiffness and toughness was achieved with use of the functionalized copolymers prepared with metallocene catalysts. According to cone calorimetry, flame retardancy properties of the composites did not deteriorate upon addition of compatibilizers.