Polymer modified fillers in composites has attracted the attention of numerous researchers. These fillers are composed of core-shell structures that exhibit enhanced physical and chemical properties that are associated with shell surface control and encapsulated core materials. In this study, we have described an apt method to prepare polyimide (PI)-modified aluminum nitride (AlN) fillers, AlN@PI. These fillers are used for electronic encapsulation in high performance polymer composites. Compared with that of untreated AlN composite, these AlN@PI/epoxy composites exhibit better thermal and dielectric properties. At 40 wt% of filler loading, the highest thermal conductivity of AlN@PI/epoxy composite reached 2.03 W/mK. In this way, the thermal conductivity is approximately enhanced by 10.6 times than that of the used epoxy matrix. The experimental results exhibiting the thermal conductivity of AlN@PI/epoxy composites were in good agreement with the values calculated from the parallel conduction model. This research work describes an effective pathway that modifies the surface of fillers with polymer coating. Furthermore, this novel technique improves the thermal and dielectric properties of fillers and these can be used extensively for electronic packaging applications.