The application of highly filled composites is limited by their poor processing and rheological properties due to the high loading of fillers. One possible solution to this problem is to use maleic anhydride grafted polypropylene (MAPP) with high melt index as compatibilizer and lubricant. Herein, magnesium hydroxide (MH)/linear low‐density polyethylene (LLDPE) composites with 60 wt% of MH were prepared using MAPP with three different melt flow indexes (MFI). The equilibrium torque and melt flow index tests show that the addition of MAPP with high MFI significantly improves the processability and flowability of MH/MAPP/LLDPE composites. The rheological studies show that it also leads to a substantial reduction in the viscosity and therefore MH/MAPP/LLDPE composites exhibit more solid‐like responses. The scanning electron microscopy shows that a transition layer is formed at the MH‐LLDPE interface. The flame retardancy test shows that the addition of MAPP slightly reduces the flame retardancy of the composites as evidenced by the reduced limiting oxygen index and increased total heat release. Cone calorimeter test shows that the simultaneous addition of MH and MAPP has a synergistic smoke suppression effect. Maleic anhydride grafted polypropylene with a high melt flow index not only improves the dispersion of magnesium hydroxide particles in linear low‐density polyethylene matrix, but also acts as a lubricating layer, thus significantly improves the processability and fluidity of highly filled MH/LLDPE composites.