Livestock dung, discarded crop straws, and residual plastic film are the primary agricultural non-point sources of pollution. For livestock dung and discarded crop straw, the general treatment focuses on compost, animal fodder, industrial raw material, and new energy. The development of degradable mulch film is the main way to solve pollution from residual plastic film. However, an effective way to solve the above three types of pollution simultaneously and use them for ecological circular agriculture has been less studied. In this study, using cow dung and flax straw wastes as raw materials, we prepared natural, fibre-based paper mulch using the rapid-Kothen method and analysed the film-forming mechanism. Based on the Van Soest method, the cow dung and flax straw waste contain abundant cellulose fibres: 36.75% and 54.69%, respectively. The tensile strength and tear strength of fibre paper mulch are 1.87 kN/m and 19.91 N/mm, respectively. To enhance the adaptability of the fibre paper mulch in humid environments, the surface of the mulch was treated with alkyl ketene dimer (AKD). The AKD-coated fibre paper mulch displays hydrophobic properties, indicated by a contact angle of 128° ± 2°. It has a wet tensile strength of 0.64 kN/m and a wet tear strength of 8.23 N/mm. Additionally, it exhibits a dry tensile strength and a tear strength of 2.13 kN/m and 16.43 N/mm, respectively. Notably, the dry tensile strength is increased by 16.31%. In this way, the livestock dung and discarded crop straw can be reused, reducing dung pollution and straw burning in livestock farms, and the final products can alleviate the residual film pollution simultaneously.