Enormous amounts of plastic wastes are generated worldwide and the approaches related to plastic recycling or reusing have become the research focus in the field of composite materials. In this study, green composites were prepared via melt-blending method using high-density polyethylene (HDPE) sourced from plastic bags as a matrix and sugarcane bagasse (SCB) fiber as reinforcing filler. The effects of fiber loading (5, 10 and 15 wt%) and fiber modification on the mechanical and dimensional stability (weight gain by water absorption) properties of the green composites were investigated. Results showed that the inclusion of SCB fiber into recycled HDPE matrix increased the composite stiffness but decreased the mechanical strength and resistance to water absorption. With the fiber modification through alkali treatment, the mechanical strength was remarkably improved, and the modulus and water absorption of the composites were found to be reduced. From the finding, it can be concluded that the prepared green composites free of coupling agent could add value to the plastic and agricultural wastes, and serve a potential candidate to replace some conventional petroleum-based composites.