An important goal to achieve sustainable development is to use raw materials that are easily recyclable and renewable, locally available, and eco-friendly. Sheep wool, composed of 60% animal protein fibers, 10% fat, 15% moisture, 10% sheep sweat, and 5% contaminants on average, is an easily recyclable, easily renewable, and environmentally friendly source of raw material. In this study, slump testing, compressive and flexural strengths, ultrasonic pulse velocity, sorptivity, and chloride penetration tests were investigated to assess the influence of wool fibers on the strength and transport properties of concrete composites. Ordinary Portland cement was used to make five concrete mixes incorporating conventional wool fibers (WFs) ranging from 0.5 to 2.5% and a length of 70 mm. The wool fibers were modified (MWFs) via a pre-treatment technique, resulting in five different concrete compositions with the same fiber content. The addition of WF and MWF to fresh concrete mixes resulted in a decrease in slump values. The compressive strength of concrete was reduced when wool fibers were added to the mix. The MWF mixes, however, achieved compressive strength values of more than 30 MPa after a 90-day curing period. Furthermore, by including both WF and MWF, the flexural strength was higher than that of plain concrete. In addition, adding fibers with volume fractions of up to 2% reduced the concrete composite’s sorptivity rate and chloride penetration depths for both WF and MWF content mixes. Consequently, biomass waste like sheep wool could be recycled and returned to the field following the circular economy and waste valorization principles.