Rice husk and nanoclay (montmorillonite)-filled low-density polyethylene composite films were prepared by extrusion blown film. Maleic anhydride-modified polyethylene was used as compatibiliser in various concentrations ranging from 0 to 8 parts per hundred. X-ray difractograms showed an increase in interlayer spacing of montmorillonite from the use of compatibiliser when compared to the uncompatibilised composites; an increase of 20, 33, 36 and 38% for 2, 4, 6 and 8 parts per hundred, respectively, of maleic anhydride-modified polyethylene. With the incorporation of maleic anhydride-modified polyethylene, a better dispersion of the fillers was also achieved, as confirmed by scanning electron microscopy. The compatibilised composite films showed improved tensile and barrier properties. The addition of 4 parts per hundred of the compatibiliser resulted in an improvement by 22% in tensile strength. Furthermore, oxygen barrier property of the composite films improved more than twofold by adding 4 parts per hundred of maleic anhydride-modified polyethylene. This improvement in tensile and barrier properties is due to an increase in the interfacial adhesion between the fibre and matrix and better dispersion of impermeable nanoparticles.