Reutilization of industrial waste is one of the emerging strategies to combat solid waste disposal for the protection of our environment. The present work describes a novel and economic approach to reutilize finely ground shoe sole scrap, a thermoset polyurethane-based waste (PUW) material generated during shoe sole production in footwear industries as an efficient reinforcing filler in natural rubber (NR). Shoe sole scrap was ground to fine powder and characterized by various analytical techniques. NR-PUW composites were prepared using 0–20 phr (parts per hundred of rubber) of PUW. The cure characteristics, mechanical, thermal, and morphological properties of prepared composites were studied. Composite with 5 phr PUW showed a remarkable improvement in tensile strength by 10% and modulus at 300% elongation increased by 9% compared to that of neat sample. A considerable increase in abrasion resistance and tear strength was also observed in 5 phr PUW loaded composites. Other mechanical properties like hardness, heat build-up and compression set showed a regular increase with further filler loading. To estimate the level of interfacial adhesion between the filler and the matrix, the experimental values of tensile strength were compared with Nicolais–Narkis (N–N), Lu, and Turcsányi–Pukànszky–Tüdõs (T–P–T) models and elastic modulus values with Einstein and Guth and Smallwood models. The tensile strength values are in agreement with T-P-T model (B = 4), up to 5 phr PUW proving the better adhesion between NR and PUW at lower filler loadings. At higher PUW loading, the experimental results are approaching Lu and N–N models indicating that this adhesion is collapsed. The incorporation of PUW as a filler in NR does not adversely impact the thermal stability of prepared composites. The results obtained are not only promising from a circular economy perspective, but also is contributive in production of high-performance, low-cost NR composites for various industrial applications.