Polypropylene (PP) and high density polyethylene (PE) and are two widely used standard plastics which can be combined to give attractive properties. In this study a selected blend of these plastics is further modified by incorporating nanokaolinite clay and e-glass fibre into the matrix, thereby converting the blend into a fibre-nanomaterial-reinforced-plastic (FNRP). In this manner the PP-PE blend can be upgraded for more critical applications requiring strength and light weight. Melt compounding technique was used to prepare FNRP and samples for testing were prepared by injection molding. Most reports suggest that kaolinite clay, though cheap and abundantly available is difficult to disperse in polymer matrix compared to costly montmorillonite clay. This difficulty is overcome by surface modification of nanokaolinite clay by an organic group and the effect is studied using mechanical properties, thermal stability, dynamic mechanical and rheological behavior. Morphological characterization is done by scanning electron microscopy. This study shows that nanoclay and e-glass fibre synergistically modify PP-PE blend. The resulting composite can be preferentially utilized for manufacturing parts of space crafts, ships, submarines etc.