This study investigates the improvement of mechanical strength in M25 grade concrete through the incorporation of Hypo sludge and the addition of 2% novel sisal fiber, comparing the results with conventional concrete. Hypo sludge, a paper industry waste, serves as a supplementary cementitious material, contributing to sustainability. The novel sisal fiber, chosen for its unique properties, aims to enhance the concrete's compressive and flexural strength. Results indicate a significant improvement in compressive strength, with a simultaneous reduction in permeability and increased resistance to environmental factors. The incorporation of Hypo sludge and novel sisal fiber contributed to the formation of a denser and more durable concrete matrix. Durability tests, including freeze-thaw resistance and chloride ion penetration, revealed superior performance compared to conventional concrete. The mean compressive strength for Conventional Concrete (CC) was 33.98 N/mm², whereas Hypo sludge Concrete (HSC) exhibited a higher mean of 37.46 N/mm². The highest mean compressive strength was observed in Hypo sludge + Sisal Fiber Concrete (HSFC) at 40.18 N/mm², achieved with an optimal combination of 30% Hypo sludge and 2% novel sisal fiber. In terms of flexural strength, CC had a mean of 3.79 N/mm², Hypo sludge Concrete HSC showed an increased mean of 4.47 N/mm², and Hypo sludge + Sisal Fiber Concrete HSFC demonstrated the highest mean at 5.79 N/mm², with the optimum blend of 30% Hypo sludge and 2% novel sisal fiber contributing to this enhanced performance. Additionally, the mean durability values were 29.72 for CC, 32.42 for HSC, and the highest at 35.56 for HSFC with the optimized mixture. The result, denoted by Mauchly's W statistic, indicates no significant departure from sphericity (W = 0.806, Approx. Chi-Square = 3.459, df = 2, p = 0.177). These results underscore the positive impact of the optimal combination of 30% Hypo sludge and 2% novel sisal fiber on both mechanical and durability properties in M25 grade concrete. This research contributes to the evolving field of eco-friendly construction practices and novel material applications in concrete engineering.