Recently, there has been a focus on reducing the negative environmental impact of increased disposal of low-density polyethylene (LDPE) packaging material. There is a need for more attention to be directed towards recycling the accumulating plastic wastes and agricultural residues like PKS fibre. This work investigates the preparation and evaluation of palm kernel shell (PKS) fiber-reinforced LDPE biocomposite as potential means of waste utilization and value-addition. LDPE waste sachets and palm kernel shell (PKS) fibers were utilized for biocomposite production using the hand lay-up method. The PKS fiber filler contents were varied from 0 to 30 wt%. The compression, flexural, impact, and tensile strengths, water absorption, and biodegradability properties of the prepared biocomposites were determined according to ASTM standards. The results indicated that LDPE/PKSF biocomposite exhibited improved impact strength from 28.9 to 41.9 J and better resistance to deformation (flexural modulus from 301 to 365 and Young’s modulus from 135.6 to 223.4 N/mm²), with increasing fiber contents from 0 to 30 wt%. This work reports the successful valorization of palm kernel shell fibers and LDPE for the production of biocomposites with potential value addition towards indoor furniture applications.