Wood/Plastic Composites is a newly developed material and can be used in many fields. Since the interfacial compatibility is one of the key factors in the production and application of wood/plastic composites, the current advances on interfacial compatibilization are reviewed in this paper. This research covered both domestic and foreign literature. With the focus on industrial application, the authors stress that adding compatibilizers in the compounding phase will be more effective than chemical modification on the polarity of a wood surface to improve the interfacial compatibility between the wood and plastic. The authors also point out that further research should focus on developing equipment suitable to normal production of wood based panels, and various compatibilizers that adapt to different species of wood and other lignocellulosic materiales, and plastics under high moisture content condition.