.The novel modified steel slag/wood-plastic composites were innovatively prepared by melt blending with melt pressure 4.8 MPa ascribed to simpler operation. The addition of modified steel slag could be grafted on the molecular chain of polyethylene and wood powder using melt blending, producing chemical correlations. Their higher flexural strengths in the range of 24.78~32.35 MPa in accordance with GB/T 24137-2009 were used as indoor and outdoor decorative panels. Especially, the wood-plastic composite with 16 wt.% modified steel slag possessed the most optimal tensile strength and flexural strength achieving 17.36 MPa and 32.35 MPa which increased by 16.1% and 9.1% compared with talc powder/wood-plastic composites, respectively. Moreover, modified steel slag containing aluminum oxide, silicon dioxide, magnesium oxide and phosphorus pentoxide combined with residual substances of polyethylene and wood powder, resulting in a rapidly condensed form as a protective shield during combustion, increasing char yields as well as heat resistance.