The purpose of this study is to investigate a novel exploitation approach for a mass livestock byproduct, namely sheep wool fibres. In order to fulfil this aim, wool fibre toughened epoxy composites with an amount of 2.4, 4.1 and 5.7 phr were prepared via the hot press method. Initially, mechanical assessment of the composites was executed, in order to evaluate their mechanical integrity. The flexural and shear strength tests showed that the wool fibre-epoxy composites maintain their mechanical properties for up to 4.1 phr and no degradation is detected. Subsequently, the thermal properties were tested. Thermogravimetric analysis proved that adding wool fibres as toughening agent in epoxy matrix can prolong the endurance of the material while reaching high temperatures. The coefficient of thermal conductivity decreased by 30% compared to neat epoxy, something that is also confirmed through simulation, proving that wool fibre-epoxy composites can be considered as a promising insulating material, while exploiting a natural waste.