The efficient use of fibers derived from natural sources is the main goal of this research project. However, the priority on natural fibers falls short of meeting the necessary strength requirements. The goal of this work is to empirically analyze composite materials made with sugarcane bagasse and jute natural fibers as reinforcement, and PVA as the matrix. The goal is to examine the various mechanical and thermal insulating properties of Bagasse fiber/jute fiber composites to determine their application in technical domains. To carry out this investigation, a series of five hybrid composites were developed, each containing 65% polyvinyl acetate and varying the blend proportion of bagasse fiber and jute fiber: 100% /0%, 70%/30%, 50%/50%, 30%/70%, and 0%/100%. Compression molding was used as the fabrication technique. These composites’ resulting mechanical characteristics followed a critical analysis by ASTM standards. Through SEM analysis, the fiber shape, internal fracture forms, and binding properties were investigated. The results of the study showed that the tensile strength of composites made of bagasse and jute fibers is 265.80 MPa, which is close to the strength (270.10 MPa) displayed by composites made of synthetic fibers. Significantly, compared to the other configurations, the composites made up of 70% jute and 30% bagasse fibers exhibit a higher thermal insulation coefficient. Furthermore, compared to the other samples, these 70/30 composites had better impact resistance and flexural strength.