The restoration of degraded mangrove habitats is a global priority. In countries such as India, the significance of coastal mangrove forests is deeply embedded after the 2004 tsunami and numerous cyclones that caused immense damage to coastal communities. Mangrove restoration drives have been carried out in several regions across the Indian coast. However, the establishment of mangrove nurseries using plastic bags to plant seedlings results in a large amount of plastic waste at the end of each plantation drive. People have tried to combat this issue of plastic pollution by adopting alternative methods but encountered several drawbacks and hitches. In this study, hand‐woven Palmyra (Borassus flabellifer, Arecaceae) bags were experimented with as a replacement for plastic bags to grow seedlings. The bags were able to withstand water inundation conditions similar to those of mangrove tidal flats for a maximum of 6 months, beyond which they disintegrated. The mangrove seedlings showed good growth similar to that in plastic bags, but the roots were well spread in Palmyra bags compared to plastic bags. In addition, during plantation, the seedling along with the bag could be planted as the bags were biodegradable, which is an advantage over plastic bags that need to be removed. Moreover, since local fishermen community members prepared these bags, it provided them with an alternative source of livelihood. Hence, Palmyra bags are an eco‐friendly alternative to plastic bags in reforestation programs.