Hydroxyl-rich waste fibers have been utilized as support to synthesize paper derived monodispersed Ag composites. We utilized the one-step thermal reduction and carbonization method to synthesize a meso-pore carbon frame with mono-dispersed silver nanoparticles (Ag@C). The Ag@C showed excellent catalytic activity in 4-nitrophenol reduction reactions attributing to their well dispersed silver nanoparticles and high surface area. The Ag@C catalyst could be recycled for ten times without significant loss of its catalytic activity. Furthermore, the Ag@C could be used as a Surface-enhanced Raman scattering (SERS) substrate, and the SERS signals strength were shown to be seven times higher than unloaded carbon membrane. The results clearly indicated that the Ag nanoparticle-loaded recycled fibers exhibited SERS activity, rendering it an excellent SERS substrate for practical applications. The efficient utilization of the widely accessible waste fibers from paper-making industry could provide a sustainable feature of this work to reduce manufacturing cost and contribute it to be an environment-friendly bifunctional material.