This study was to find a way of reusing wood and plastic wastes, which considered as a troublesome problem to be solved in this age of mass production and consumption, in manufacturing wood fiber-polypropylene fiber composite panel. And the feasibility of this composite panel as a substitute for existing headliner base panel of automobile was also discussed, especially based on physical and mechanical performance. Nonwoven web composite panels were made from wood fiber and polypropylene fiber formulations of 50 : 50, 60 : 40, and 70 : 30, based on oven-dry weight, with densities of 0.4, 0.5, 0.6, and 0.7 g/$cm^3$. At the same density levels, control fiberboards were also manufactured for performance comparison with the composite panels. Their physical and mechanical properties were tested according to ASTM D 1037-93. To elucidate thickness swelling mechanism of composite panel through the observation of morphological change of internal structures, the specimens before and after thickness swelling test by 24-hour immersion in water were used in scanning electron microscopy. Test results in this study showed that nonwoven web composite panel from wood fibers and polypropylene fibers had superior physical and mechanical properties to control fiberboard. In the physical properties of composite panel, dimensional stability improved as the content of polypropylene fiber increased, and the formulation of wood fiber and polypropylene fiber was considered to be a significant factor in the physical properties. Water absorption decreased but thickness swelling slightly increased with the increase of panel density. In the mechanical properties of composite panel, the bending modulus of rupture (MOR) and modulus of elasticity (MOE) appeared to improve with the increase of panel density under all the tested conditions of dry, heated, and wet. The formulation of wood fiber and polypropylene fiber was considered not to be a significant factor in the mechanical properties. All the bending MOR values under the dry, heated, and wet conditions met the requirements in the existing headliner base panel of resin felt.