In terms of reduced energy consumption and simultaneously promoting woody biomass sustainability, researchers are seeking energy-efficient materials, originating from forestry and agricultural residues, for application in the building sector. In this study, bark-based panels overlaid on both surfaces with three different fibreglass types and two types of paper sheets were evaluated for potential utilization as thermal insulation panels. The proposed panels were then characterized regarding their thermal conductivity, physical, and mechanical properties such as density, water absorption, thickness swelling, surface soundness, bending strength and modulus of elasticity. It was found that thermal conductivity values ranged from 0.067 to 0.074 W/(m K) for all the produced panels. As suggested from the results, fibreglass overlays exhibited improved performance compared to paper sheet overlaying. In addition, the fibreglass overlaid bark-based panels displayed promising characteristics as insulation materials. Finally, fibreglass woven fabric was found to be more beneficial than the mesh and mat fibreglass types.