To explore the effect and mechanism of coir fiber on the performance of foamed concrete, the flexural performance test, pore characteristics and microstructure test of coir fiber foamed concrete with different content were carried out. First, Image-Pro Plus (image processing software) was used to study the pore morphology, porosity, average pore diameter, and pore roundness of CFFC with various fibers dosage (0, 0.5%, 1.0%, 1.5%, 2.0%, 2.5%) by binarization processing method. Then, a total of eighteen specimens, divided into six groups, were used to investigate the effect of CF dosage on flexural strength, toughness, energy absorption, and failure patterns of FC through a three-point flexural test. Furthermore, the microscopic properties of coir fiber foamed concrete (CFFC) were observed by scanning electron microscope (SEM) and energy dispersive X-ray detector (XRD) to explain the influence mechanism of CF on FC flexural properties. According to the research, CF can affect the pore characteristics of CFFC and improve its flexural performance. When CF content is 1.5–2.0%, the porosity, diameter and roundness of CFFC have lower values of 68.6%, 1.96 mm and 1.29. After the fiber dosage reaches 1.5%, the CFFC failure mode changed to plastic damage, the flexural strength increased from 0.33 to 0.73 MPa, and the toughness energy absorption value was increased from 0.05 to 1.4 J. The optimum dosage of coir fiber is 2.0% for improving the flexural mechanical properties of FC. CF affects the process of hydration reaction of CFFC, but does not change the type of hydration product. However, the flexural performance of FC would decrease with excessive dosage of CF (> 2.0%) due to accelerating the formation of Ca(OH)2. CFFC can solve problems such as brittleness and easy cracking existing in traditional foamed concrete, and it can be used in the field of pavement engineering, foundation backfill and lightweight wall structure with CF dosage of 15–2.0%.