This systematic review study adopted the PRISMA methodology to investigate recent research on wood-plastic composites (WPC) utilizing post-consumer plastics in the construction industry. Initially, 3111 articles were selected from academic databases using keywords such as “wood and plastic composites”, “WPC”, “polymer”, “recycled”, “waste”, “construction”, and “sustainability.” After stringent exclusion criteria, 15 relevant studies on plastic waste composites were identified. These studies often employ post-consumer plastics like polypropylene and high-density polyethylene, along with plant-based fillers, aiming to enhance mechanical properties and reduce reliance on virgin materials. Analysis of these studies revealed that the optimal plastic composition in the composites ranged from 40% to 45% wood and from 50% to 60% plastic, with the extrusion process being the most employed for shaping. Specific factors, such as the use of compatibilizers and the particle size of raw materials, were identified as significant influencers on composite strength. These materials exhibited high thermal stability, rendering them suitable for construction applications exposed to high temperatures. The diversity of plastic waste explored in the studies underscores the potential to tailor thermal properties to specific application demands. These composites facilitate closed-loop plastic recycling, enabling their reintegration into the production chain and offering opportunities for lightweight, durable, and high-performance products in the construction industry. However, beyond the factors examined in the studies, a meticulous assessment of the fire resistance, weather resistance, ultraviolet resistance, moisture absorption, dimensional stability, degradation, long-term durability, impact strength, recyclability, and cost-effectiveness of the material is crucial. Thoughtful consideration of these factors is essential to achieving a comprehensive understanding of the potential and limitations of recycled plastic composites in promoting energy efficiency and sustainability in the construction industry.