The study aimed to advance composite technology by exploring the potential of recycled materials, specifically high-density polyethylene (HDPE) composites reinforced with sugarcane bagasse fibers. This research not only addresses environmental concerns by utilizing recyclable materials but also aims to offer significant technical, economic, and social advantages. The investigation focused on formulating and evaluating these composites, considering varying proportions of untreated sugarcane bagasse fibers and examining the effects of chemical treatment with stearic acid at different temperatures. Using a conical twin-screw extruder and injector, the researchers produced and analyzed the composites both morphologically and mechanically. The principal findings indicated that the inclusion of untreated fibers improved the stiffness and tensile strength of the composites. Nevertheless, adhesion between the fibers and the matrix was compromised, especially with higher fiber concentrations. Chemical treatment at 40 °C significantly improved fiber/matrix interactions, thereby enhancing the reliability and mechanical properties of the composites. This treatment led to substantial increases in tensile and compressive strengths, particularly noticeable in composites containing 10%–15% fiber by weight. These results not only demonstrate the feasibility of using recycled HDPE and sugarcane bagasse fibers in composite materials but also suggest avenues for further exploration. Future research could delve deeper into optimizing chemical treatment processes to achieve even better adhesion and mechanical performance. Moreover, exploring broader applications in industries such as automotive, aerospace, naval, civil engineering, and packaging could unlock new opportunities for these sustainable composites. This study thus paves the way for advancing composite technology towards more environmentally friendly and economically viable solutions.