In order to develop composites with better mechanical properties and environmental performance, it becomes necessary to increase the hydrophobicity of the natural fibers and to improve the interface between matrix and natural fibers. Graft copolymerization of natural fibers is one of the best methods to attain these improvements. Only few workers have reported the use of graft copolymers as reinforcing material in the preparation of composites. So in the present paper, we report the preparation of graft copolymers of flax fibers with methyl acrylate (MA) using Fenton’s reagent (FAS-H2O2) as redox system. Synthesized flax-g-poly(MA) was characterized with FTIR, TGA/DTA, scanning electron microscopy (SEM), and X-ray diffraction (XRD) techniques. Composites were prepared using flax-g-poly(MA) as a reinforcement and phenolformaldehyde (PF) as the binding material. Mechanical properties of phenol-formaldehyde composites were compared and it has been found that composites reinforced with flax-g-poly(MA) showed improvement in mechanical properties. Composites reinforced with flax-g-poly(MA) showed better tensile strength (235 N) and compressive strength (814 N) in comparison to composites reinforced with original flax fiber which showed lesser tensile strength (162 N) and compressive strength (372 N). Composites reinforced with flax-g-poly(MA) shows the improved MOR, MOE, and SP.