In this letter, nanocomposites based on maleic anhydride grafted high density polyethylene (HDPE-g-MA) and amine-functionalized nanodiamond (ND) were fabricated via one-step reactive melt-blending, generating a homogeneous dispersion of ND, as evidenced by transmission electron microscope observations. Thermal analysis results suggest that addition of ND does not affect significantly thermal stability of polymer matrix in nitrogen. However, it was interestingly found that incorporating pure ND decreases the thermal oxidation degradation stability temperature, but blending amino-functionalized ND via reactive processing significantly enhances it of HDPE in air condition. Most importantly, cone tests revealed that both ND additives and reactive blending greatly reduce the heat release rate of HDPE. The results suggest that ND has a potential application as flame retardant alternative for polymers. Tensile results show that adding ND considerably enhances Young's modulus, and reactive blending leads to further improvement in Young's modulus while hardly reducing the elongation at break of HDPE.