In industries, the usage of natural fibre composites (NFC) becomes one of the inevitable materials in the engineering field. The applications are owing to its characteristics like high strength to weight ratio, recyclability less density and inexpensive. In recent days the automotive parts like door trim panels, wheel arch, rear hatch, roof liner and bonnet insulation were replaced using NFC. Present-day huge usage of NFC people is working on the recyclability of composites. The present research aimed to recycle the NFC waste as reinforcement in the sisal/epoxy composite. The effect of composite waste reinforcement at various weight percentages (0, 5, 10 and 15%) were studied. The sisal/epoxy composite subjected to mechanical characterisations and drilling performance were studied by varying the process parameters such as feed and spindle speed using design of experiment (DOE). The distribution of the reinforcement and the bonding between the fiber and matrix were examined through a scanning electron microscope (SEM). The addition of composite waste (5%-300µ) improves the mechanical and machining properties of the composite. © 2020 Vellore Institute of Technology.