The poor processing and rheological properties of highly filled composites caused by the high loading of fillers can be improved with the use of maleic anhydride grafted polyethylene wax (PEWM) as compatibilizer and lubricant. In this study, two PEWMs with different molecular weights were synthesized by melt grafting, and their compositions and grafting degrees were characterized by Fourier transform infrared (FTIR) spectroscopy and acid-base titration. Subsequently, magnesium hydroxide (MH)/linear low-density polyethylene (LLDPE) composites with 60 wt% of MH were prepared using polyethylene wax (PEW) and PEWM, respectively. The equilibrium torque and melt flow index tests indicate that the processability and fluidity of MH/MAPP/LLDPE composites are significantly improved with the addition of PEWM. The addition of PEWM with a lower molecular weight leads to a substantial reduction in viscosity. The mechanical properties are also increased. The limiting oxygen index (LOI) test and cone calorimeter test (CCT) show that both PEW and PEWM have adverse effects on flame retardancy. This study provides a strategy to simultaneously improve the processability and mechanical properties of highly filled composites.