Fly ash, an inorganic alumino silicate has been used as filler in epoxy matrix, but it reduces the mechanical properties due to its poor dispersion and interfacial bonding with the epoxy matrix. To improve its interfacial bonding with epoxy matrix, surface treatment of fly ash was done using surfactant sodium lauryl sulfate and silane coupling agent glycidoxy propyl trimethoxy silane. An attempt is also made to reduce the particle size of fly ash using high pressure pulverizer. To improve fly ash dispersion in epoxy matrix, the epoxy was modified by mixing with amine containing liquid silicone rubber (ACS). The effect of surface treated fly ash with varying filler loadings from 10 to 40% weight on the mechanical, morphological and thermal properties of modified epoxy composites was investigated. The surface treated fly ash was characterized by particle size analyzer and FTIR spectra. Morphological studies of surface treated fly ash filled modified epoxy composites indicate good dispersion of fillers in the modified epoxy matrix and improves its mechanical properties. Impact strength of the surface treated fly ash filled modified epoxy composites show more improvement than unmodified composites.