This study examines the use of waste and recyclable polyethylene terephthalate (rPET) along with micro-sized ground tire rubber (GTR) to produce a polymer matrix composite (PMC) material. The PMC materials are made in a Twin-screw extruder, with different ratios of rPET to GTR ranging from 90:10 to 50:50. In order to assess the performance of the newly created rPET-GTR matrix composite materials, the physical, mechanical properties are empirically observed. The thermal properties and crystallinity (Xc) of PMC materials are analysed using DSC. SEM and microscopic imaging are used to determine the characteristics of rPET-GTR composite materials, including elemental compositions like carbon, oxygen, and silicon. The functional group and chemical structure are confirmed through IR spectra analysis using FTIR techniques. The inclusion of micro-sized GTR has shown a significant effect on the physical (density = 1.306 - 1.208 g/cm3, water absorption = 1.76%–10.74%, and melt flow index = 8.12 - 12.79 gm/10 min), mechanical (tensile strength = 52.78 – 73.58 MPa, impact strength = 110.64 - 138.44 J/m, hardness = 56.14 - 76.37, and flexural modulus = 66.23 - 106.32 MPa), and thermal (melting temperature = 220.25°C–192.57°C, Xc = 20.30 to 30.58%) properties of rPET. These studies all work together to improve the performance of waste rPET and GTR materials by repurposing them. It helps to promote sustainability, cost-effectiveness, and expands the range of applications (automotive parts, building materials, sports equipment, electrical insulation and prosthetics) for rPET-based composites with potential uses in the polymer industries.