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Natural fibre based polymer composite is developed by using high density polyethylene (HDPE) as matrix and Saskatchewan-grown flax oilseed flax fibre as reinforcement to develop a value-added product by using Compression molding processing technology. This is general process use to develop polymer composite product. This technique produces products which are less consistent due to poor dispersion of fibre in polymer matrix. Extrusion process was used for thermo-chemical fibre and polymer blend for better fibre dispersion for manufacturing compression molding product. This research has investigated the effect of flax fibre diameter on physical and mechanical properties of compression molded flax fibre based composites. The compression molded developed composite board could be used for automotive parts, construction industries and other commercial applications. This will help in developing new industries and provide some direction for value- added utilization of flax.