An innovative process route has been developed to produce modified banana fiber that are used as reinforcement in polypropylene composites for automotive parts. Banana fiber (BF) is modified through, Alkaline peroxide (APF), and oxygen delignification (ODF) treatment to obtain better adhesion and enhanced thermo-mechanical properties. The fiber-reinforced polymer (FRP) composites (10–30 % loading), were prepared through a specified configuration in a co-rotating twin screw extruder followed by injection molding. The results show that the ODF treatment with a 15 % NaOH concentration resulted in an 11-kappa number, which was lower than APF and untreated fiber. The highest improvement in tensile (31.27 ± 2.56) and flexural strength (44.880 ± 1.05 MPa) was achieved for ODF polymer composite and were 20.40 % and 35.6 % higher compared to the untreated fiber. The addition of natural fiber decreased the melt flow index to 7.56 gm/10 min with a slight decrease in hydrophilicity. The thermal stability was increased with enhanced melting, crystallization temperatures, and surface morphology.