This work is a comprehensive study of the effect of extrusion process parameters and formulation on the properties of polypropylene (PP)/short flax fiber composites. The parameters that were varied during the twin-screw extrusion process were screw configuration, revolutions per minute (rpm), extrusion temperature, and flow rate. The effect of the feeding zone location of cellulosic fiber was also considered. This study investigates the effect of the formulation, cellulosic fiber content, the presence of a coupling agent, and of a reactive additive on composite performance. The composites were characterized in terms of morphology and microstructure, fiber length, rheological, thermal, and mechanical properties. Sensibility to humidity and recyclability were also considered. When compared with as-received PP, the tensile strength of injection-molded parts increased with cellulosic content by up to 40 vol %, and the tensile modulus increased 3.5 times when a combination of coupling and reactive agents was used. Exposed to controlled humidity of 50% during 1 year, these composites exhibited a very low level of humidity uptake around 0.85 wt %. The processability of these materials using a cast film line and the mechanical properties of extruded sheets are also presented. Furthermore, these materials demonstrate a good recyclability using injection molding by keeping the integrality of their mechanical properties after five reprocessing cycles.