The use of eco-friendly natural fiber-reinforced polymer composites is rapidly expanding across diverse sectors. The rapid spread of water hyacinth disrupts aquatic ecosystems by modifying the pH of water and salinity in Bangladesh. This work investigated on the impact of incorporating both untreated and chemically treated water hyacinth fibers into polypropylene (PP). Untreated water hyacinth (UWH) powder was treated with an alkaline solution, producing mercerized water hyacinth (MWH). MWH was further oxidized to yield oxidized water hyacinth (OWH). Analysis of attenuated total reflection-fourier transform infrared (ATR-FTIR) spectra of UWH, MWH and OWH confirmed cellulose modification. The UWH and OWH were taken in varying contents (1, 2.5, 5, 7.5, and 10 wt%) and added to PP to make UWH-PP and OWH-PP composites using compression molding technique. The 1% fiber content OWH-PP composites exhibited enhanced tensile strength, elongation, and impact strength compared to UWH-PP composites. Enhanced mechanical properties in OWH-PP composites suggested that benzoyl peroxide treatment improves interfacial adhesion. Morphological analysis of the OWH-PP composite showed better interfacial bonding between water hyacinth and PP than that of the UWH-PP composite. Thermogravimetric analysis (TGA) depicted the thermal stability of the UWH-PP and OWH-PP composites. The chemical reaction of cellulose monomer was further studied with DFT/B3LYP level of theory using two different basis sets 6-31+G(d, p) and cc-pVTZ. The calculated vibrational spectra of the untreated, mercerized and oxidized cellulose monomer agree well with the ATR-FTIR spectra, confirming chemical modification. DFT calculations of thermodynamic properties revealed the feasibility of the reactions. Electronic property (NBO charge) indicated charge transfer and structural changes during chemical modification.