This work studies the development of varying weight percentages (0.5, 1.0, and 1.5 wt%) of surface functionalized mullite reinforced unsaturated polyester (UP) composites and their thermal, dielectric, water absorption, and mechanical properties. The synthesized mullite was functionalized with vinyltriethoxysilane (VTES). The introduction of vinyl groups on the surface of mullite was confirmed by FT‐IR, TGA, and X‐ray diffraction (XRD) analyses. Varying weight percentages (0.5, 1.0 and 1.5 wt%) of vinyl functionalized mullite (VFM) were incorporated into UP resin with a benzoyl peroxide initiator to obtain composites. The resultant data obtained from thermal, mechanical, dielectric, and water absorption studies, indicate that incorporation of VFM, leads to a significant improvement in the thermo mechanical, dielectric, and moisture resistant properties of the UP composites, compared with those of neat UP matrices. The molecular dispersion of VFM fiber in reinforced UP matrix composites was confirmed by SEM analysis. POLYM. COMPOS., 35:1663–1670, 2014. © 2013 Society of Plastics Engineers