In the recent scenario, the focus for the environmental pollution and the piling of products from non-renewable and non-biodegradable resources has forced many researchers to develop new eco-friendly and biodegradable materials. In this work, banana fiber reinforced hybrid polymer matrix composite is fabricated and tested. Banana fiber is treated with various alkali solutions to modify surface properties in order to improve mechanical properties. Hybrid polymer is made from CNSL (Cashew Nut Shell Liquid) and Isotholic Polyester. Dynamic behavior of banana fibre reinforced hybrid polymer matrix composite is investigated by means of experimental and finite element analysis. Simulation of frequency response and dynamic displacement are carried out on banana fibre reinforced hybrid polymer matrix composite by ANSYS and it is compared with experimental results. Optimization of design parameter is carried out using ANOVA technique and design of experiment of Taguchi method is employed for better combination of the parameter.