This paper focused on the analyses of the composition, microstructure, thermal stability and mechanical behavior of modified ramie fiber and its reinforced polypropylene composites. Ramie fiber (RF) was treated with epoxy-silicone oil (ESO) at 160°C in argon gas. The FTIR and XRD analyses indicated that some silicone molecular chains were bonded on the surface of modified RF, which decreased the crystallinity of the fiber without changing the crystalline type of cellulose. The SEM results of fracture surface showed that the modified RF/PP composite had better interfacial bonding between RF and PP. The mechanical tests showed that the impact strength and the elongation at break of RF/PP were increased by 17.0% and 196% after modification, respectively. The tensile strength of 30RF/PP was improved from 18.95MPa to 25.96MPa compared to pure PP. The results of TGA showed that fiber treatment could improve the degradation temperature of RF/PP composites.