Abstract: A coating composition that improves fiber dispersion and mechanical properties in reinforced composite articles is provided. The coating composition includes a chemical compound that acts as an emulsifier, a surfactant, and a melt viscosity reducer. In at least one exemplary embodiment, the chemical compound is an ethoxylated fatty acid or an ethoxylated fatty alcohol compound. The coating composition may be applied to the reinforcing fiber strand after a conventional sizing composition has been applied to the reinforcing fiber and prior to wire coating the fiber with a thermoplastic resin. The coated/sized fiber strands may be chopped to form chopped strand segments and then densified or compacted to form a densified reinforcing fiber product, such as pellets. These pellets, in turn, may be used to form polymer reinforced composite articles. In alternative embodiments, the coating composition may be applied directly to the reinforcement fibers directly after fiber formation under the bushing.