The rate of global deforestation and its impact on the environment has led particle board manufacture to search for alternative feedstock, especially in countries where wood is less available compared to other cellulosic natural product. Based on the properties of coconut fibre and PET bottle, these two materials can be recycle as raw material for manufacture of panel board. As for this study, the coconut fibre were used as the filler and PET bottle as outer lining of the panel board. Two types of coconut fibre were used which are grinding and un-grinding coconut fibre. At first, the coconut fibre are undergoes softening, grinding, drying and sieving process, while PET bottle was cleaning, shredding, sieving before compacted using hydraulic hot press machine. There are four types of testing that been carried out which are swelling, water absorption, Modulus of Elasticity (MOE) and Modulus of Rupture (MOR). The result show the conventional board has the highest value for MOE test, so it’s indicate that the conventional board is less strength from the coconut fibre board. As for water absorption test, the average water absorption of coconut fibre based panel board is less than conventional board. Overall, the coconut fibre board is better than conventional panel board because coconut fibre board are less swelling, has low water absorption, high modulus of rupture and low modulus of elasticity. Based on the finding, this coconut fibre panel board has potential as a stronger and long-lasting panel board than the conventional board in the market. Other than that, the panel also have their own aesthetic value since the recycled plastic bottle used as outer lining is colourful and giving aesthetic value.