Two halogen-free inorganic flame retardants, ammonium polyphosphate (APP) and aluminum hydroxide (ATH) were added to wood-flour/polypropylene composites (WPCs) at different APP to ATH mass ratios (APP/ATH ratios), with a constant total loading of 30 wt % (30% by mass). Water soaking tests indicated a low hygroscopicity and/or solubility of ATH as compared to APP. Mechanical property tests showed that the flexural properties were not significantly affected by the APP/ATH ratio, while the impact strength appeared to increase with the increasing ATH/APP ratio. Cone calorimetry indicated that APP appeared to be more effective than ATH in reducing the peak of heat release rate (PHRR). However, when compared to the neat WPCs, total smoke release decreased with the addition of ATH but increased with the addition of APP. Noticeably, WPCs containing the combination of 20 wt % APP and 10 wt % ATH (WPC/APP-20/ATH-10) showed the lowest PHRR and total heat release in all of the formulations. WPCs combustion residues were analyzed by scanning electron microscopy, laser Raman spectroscopy, and Fourier transform infrared spectroscopy (FTIR). Thermogravimetric analysis coupled with FTIR spectroscopy was used to identify the organic volatiles that were produced during the thermal decomposition of WPCs. WPC/APP-20/ATH-10 showed the most compact carbonaceous residue with the highest degree of graphitization.