The thermal envelope is a key component of a building’s energy efficiency. Therefore, considerable efforts have been made to develop thermal insulating materials with a better performance than the existing products. However, in the current climate change scenario, these materials must be sustainable, principally during their production stage. In this context, the use of recycled raw materials and agro-industrial waste can be the basis of a material with a low environmental impact and a good thermal performance. In this study, cellulose and wheat straw were characterized. Then, they were mixed in different proportions and densities and the best thermal behavior was selected. The materials were chemically analyzed by TAPPI 2007, thermogravimetric and infrared spectroscopy, together with the measurement of their thermal conductivity with a thermal property analyzer based on the transient line heat source method. The results show that both raw materials are chemically similar to each other. When mixed, they have a thermal conductivity ranging from 0.031 to 0.036 (W/mK), being comparable with several conventional thermal insulators. On the other hand, to achieve the commercial use of this material, an installation through a blowing process has been proposed and proves to be highly promising, achieving a proper density and efficiency in its application.