This study aims to determine the thermal, acoustic, and hygroscopic properties of materials designed for building thermal insulation. These materials are composed of cardboard reinforced with fibers sourced from date palm trees. The composite formulation involves a mixture of 40% date palm components, including pinnate leaves, clusters, trunk petioles, and palm fibers, along with 60% cellulose-based cardboard waste. Water is used as the binding agent, eliminating the need for additional chemicals or additives.For the assessment, thermal conductivity, thermal diffusivity, normal transmission loss (TL), and the acoustic absorption coefficient were measured using the hot plane method, flash method and acoustic impedance tube, respectively. The results indicate that the developed composites have thermal conductivity values ranging from 0.074 to 0.081 W/m.K for a density ranging from 226.6 to 312.8 kg/m³. Additionally, the sound transmission loss coefficients exceed 5 dB in the frequency range of 500–1400 Hz, and the acoustic absorption coefficient is greater than 0.4 across a wide range of frequencies from low to high frequencies (200 Hz–1400 Hz). Furthermore, after 6 h of water immersion, a minimal capillary water absorption coefficient of 203% is achieved. What sets this study apart is the comprehensive life cycle cost analysis performed, shedding light on the sustainability of these materials. The optimization of insulation thickness was also conducted, determining optimal values based on climate conditions and energy sources. Overall, this innovative approach offers environmentally friendly and sustainable insulation options for the construction industry, integrating thermal and acoustic properties, life cycle cost analysis, and insulation thickness optimization.