Composite processing and subsequent characterization of microfibrillar composites (MFC) were the focus of this work. Compression molding of wound MFC filaments was used to fabricate MFC composites. The MFC composites were composed of polypropylene (PP) as matrix materials and polyethylene terephthalate (PET) as reinforcement fibers. The PP/PET blends were mixed with PET contents ranging from 22 wt% to 45 wt%. The effect of processing parameters, pressure, temperature, and holding time on the mechanical properties of the MFCs was investigated. Tensile tests were conducted to optimize the processing parameter and weight ratio of PET. Tensile strength and modulus increased with the increase in PET content. PP/45 wt% PET MFC composites properties reached the value of PP/30 wt% GF. Falling weight tests were conducted on MFC composites. The MFC composites showed the ability to absorb the impact energy compared to neat PP and PP/30 wt% GF.