Current available shear-thickening fluid (STFs) may suffer from issues such as unsatisfactory energy dissipation performance and unstable dynamic stability for practical engineering applications. This paper investigates the innovated compounded STFs which is fabricated by mixing needle-like carbon fiber powder (CFP) and silicon dioxide (SiO₂) into polyethylene glycol (PEG) under proper synthesis conditions. The microstructure and rheological properties of the compounded STFs, namely CFP- SiO₂/PEG, are investigated. The interaction between CFP and SiO₂ and the shear-induced microstructure are analysed using scanning electron microscopy (SEM). Steady-state rheological tests reveal that compounded STFs with different mass ratios exhibiting significant rheological behaviour and shear-thickening (ST) effects. The peak viscosity is demonstrated to be increased from 51.59 Pa·s (monodispersed STFs) to 574.74 Pa·s (compounded STFs), and the critical shear rate decreased from 79.42 s^-1 to 10.00 s^-1, when the mass fraction of CFP is set at 0.2%. The peak viscosity of the compounded STFs is shown to be increased by 313.96%, when the plate spacing is increased from 0.25mm to 1.00mm. The dynamic rheological analysis shows that the compounded STFs exhibiting excellent energy dissipation capacity at different stages. More importantly, the modulus instability and shear-thinning problems of monodispersed STFs could be significantly improved. According to the results, the key performance index of the CFP/SiO₂-PEG compounded STFs is demonstrated be improved by ten times or even higher. This work presents a novel type of STFs with high energy dissipation capacity and high dynamic stability for the application of shear thickening fluids composite in engineering practice.