Using lightweight fire-rated board (LFRB) presents cost-effective opportunities for various passive fire protection measures. The aim of the project is to develop an LFRB with enhanced fire resistance, acoustic properties, and mechanical properties. These properties were determined using a Bunsen burner, furnace, energy-dispersive X-ray, impedance tube instrument, and Instron universal testing machine. To fabricate the LFRBs, vermiculite and perlite were blended with flame-retardant binders, and four types of LFRBs were produced. A fire test was conducted to compare the fire-resistance performance of the LFRBs with a commercially available flame-retardant board. The B2 prototype showed exceptional fire-resistant properties, with a temperature reduction of up to 73.0 °C, as compared to the commercially available fire-rated magnesium board. Incorporating nano chicken eggshell into the specially formulated flame-retardant binder preserved the LFRBs’ structural integrity, enabling them to withstand fire for up to 120 min with an equilibrium temperature of 92.6 °C. This approach also provided an absorption coefficient of α = 2.0, a high flexural strength of 3.54 MPa, and effective flame-retardancy properties with a low oxygen/carbon ratio of 2.60. These results make the LFRBs valuable for passive fire protection applications in the construction and building materials industry.