In recent years, with growing contradiction between energy supply and demand, the more and more high demand of the environmental protection is needed. The work represented an environment friendly method for recycling of waste rubber and pulp sediment that a new composite material was prepared using pulp sediment as the matrix, used rubber powder as the toughening agent, and sawdust as the reinforcement. The effects of used rubber powder content on the mechanical properties of the pulp sediment and sawdust/pulp sediment were studied by measuring Shore A hardness, tensile stress, and elongationat-break. The morphology of used rubber powder/pulp sediment composites was analyzed by scanning electronic microscopy and transmission electron microscopy. The curing conditions were also discussed. The results showed when the used rubber powder/pulp sediment mass ratio was 8/100, the used rubber powder/pulp sediment sample showed smooth surface, high hardness, compact structure, uniform arrangement, and good compatibility. When the pulp sediment used as the matrix, sawdust as the reinforcement, and used rubber powder as the toughening agent, the proper recipe of the composites was 100 phr pulp sediment, 30 phr sawdust, and 10 phr used rubber powder. The mechanical properties of the used rubber powder/pulp sediment were greater than those of pure pulp sediment and used rubber powder/sawdust/pulp sediment. The best curing conditions for the used rubber powder/pulp sediment composites were at 150°C under 5 MPa for 15 min. The study on used rubber powder modified pulp sediment, exploits a new way to recycle used rubber powder and pulp sediment, not only benefit environment purification, but also reduce cost of sheet materials, and develops a new way for the economy and environment protection.