Sugarcane straw fiber (SSF) samples were prepared by chemical pulping (CP) and steam explosion (STE). CP (5, 10, 15% NaOH + 0.2% w/w anthraquinone at 121 °C for 1 h) and STE pressure (1.77, 1.96, and 2.16 MPa at 220 °C for 4 min) SSF trays were molded with a hydraulic hot-press machine at 120 °C, 7 min, and 1.72 MPa. The yield (%) of SSF from STE (54–60% dry basis (db.)) was higher than CP (32–48% db.). STE trays had greater tensile strength than CP. However, STE’s elongation and compression strength was lower than CP tray samples. The trays made from SSF using STE had less swelling in thickness, longer water wetting time, and a higher water contact angle than those made from CP. The micrographs displayed a smaller size of SSF obtained in STE than the CP. The appearance and area of peaks in ATR-FTIR spectra and XRD diffractograms, respectively, revealed that the STE trays had a larger residual lignin content from the lignin study and a lower crystallinity index than the CP trays. Moreover, the lightness values of the STE trays were lower than those of the CP trays due to lignin retention. The study results indicate that CP is the preferred method for producing SSF packaging material with high flexibility and fiber purity. However, when considering the specific SF of 4.28, the STE treatment showed superior physical and mechanical properties compared to CP. This suggests that STE could be an excellent alternative green pulping technique for producing durable biobased trays. Overall, the findings highlight the potential of STE as a viable option for obtaining trays with desirable characteristics, providing a sustainable and efficient approach to tray production.