This paper investigates the feasibility of injection-molded wood–fiber/high-density polyethylene (HDPE) composite foams that can replace injection-molded HDPE solids in industrial applications. The study applies injection foam molding technology using a physical blowing agent to a wood–fiber/HDPE composite, and examines the effects of the processing parameters on the dimensional and mechanical properties and cell density of the composite foams. In addition, the physical properties and cost of wood–fiber/HDPE composite foams are compared with those of solid HDPE. The experimental results show that wood–fiber/HDPE composite foams that have a 20% weight reduction have superior physical properties, such as density, dimensional properties (68% decrease of shrinkage and 91% decrease of warpage) and mechanical properties (28% increase of Young's modulus). Furthermore, the cost analysis confirms that wood–fiber/HDPE composite foams are much less expensive (by 40%) than HDPE. Therefore, it is concluded that wood–fiber/HDPE composite foams are strong candidates for replacing current injection-molded HDPE products.