Cigarette butts are one of the most discarded and littered items in the world, with a total amount of around 5.6 trillion, posing a grave threat to the environment and human health. This research seeks to recover cellulose acetate fibers from used cigarette filters and to evaluate the yarn-making capabilities of these fibers. The cigarette butts were gathered from various locations, and the fibers and coating were separated. The fibers were then treated with hydrogen peroxide and sodium hydroxide to eliminate the burned color and odor. Acetone and distilled water were used to filter and distill the material properly. The color coordinates of the chemically altered fibers, including reflectance value and color strength, were measured afterward. To assess the chemical, thermal, physical, morphological, and mechanical characteristics of the modified cigarette butt filter fiber, atomic absorption spectroscopy, Fourier transform infrared spectrometer (FTIR), thermogravimetric analysis, X-ray diffraction, scanning electron microscopy, and tensile properties were examined. Significant and appealing findings were obtained for the mechanical parameters, particularly the tensile strength of 1.2 gm/den for a single fiber, the fiber density of 1.2 dtex, and the effective length of 25 mm, all of which indicate the fiber’s suitability for yarn production. In addition, FTIR, thermogravimetric analysis, and X-ray diffraction measurements revealed that the cigarette butt filter fiber possessed the same characteristics as commercial cellulose acetate fiber. The preliminary results obtained on the recovered cellulose acetate fiber are encouraging for the application of this recovery material from cigarette butts to create a high-demand and value-added product, such as yarn for garment production.