Natural fibers such as Banana fiber and sugarcane bagasse powder are used in the present study, which are abundantly available at low cost. Novel hybrid natural fiber reinforced composite specimen prepared by using the matrix material as epoxy (70%) with the addition of hardener and the reinforcement material (30%) used as NaOH chemical treated banana fiber with the addition of filler material as sugarcane bagasse powder to enhance the property. To prepare the composite material hand-lay process is used and manufactured three different combination of specimen by varying the composition ration of 10%, 15%, and 20% of reinforced material. The mechanical properties such as tensile, compression, flexural, Impact test of the prepared specimen have been evaluated as per the ASTM standards. The mechanical properties results depicts that the specimen prepared with chemically treated fiber gives more strength as compared to untreated fiber composites. The morphological study evidences the proper fiber used while preparing the hybrid composite material. The maximum tensile strength achieved in specimen is 73.48 MPa, compressive strength of 99.63 MPa, flexural strength of 77.50 MPa, Impact strength of 4.8 J/mm, Vickers hardness value of 59.6. The specimen prepared with chemically treated specimen has a higher percentage of water absorption than the untreated. This novel hybrid composite material can be used in automobile, aircraft, building, sports, and household applications.