To decrease climate changes, more research focuses on decreasing waste wood biomass (WWB) burning and increasing its conversion into value-added products. The WWB was isolated from model wood processing wastewater with a new hybrid coagulant by the coagulation/flocculation method. This study is aimed to characterize the WWB and to investigate its effect in the composition of a hybrid lignocellulosic filler on the properties of recycled polypropylene (rPP)-based wood–plastic composites (WPCs). The waste biomass contained high-molecular lignin and hemicelluloses substances and represented a finely dispersed powder. It was hydrophobic and was characterized by enhanced thermal stability. To minimize the negative effect of polymer wastes on the environment, recycled polypropylene as a polymer matrix was used with the hybrid filler in fabricating WPC samples. The presence of the coagulated WWB in the hybrid filler composition positively affects the mechanical properties, water uptake and dimensional stability of the composite samples. Such a behavior of the waste biomass showed its function as a compatibilizer, which promoted the interfacial adhesion in the composite system.