Lignocellulolytic biocatalysts, including laccase, cellulase, and pectinase, have high potential for degrading lignocellulosic biomass (LCB). Jute and banana are fiber-producing LCBs that hold significant economic value. Nevertheless, certain parts of these plants are utilized as waste material due to their low-quality fiber, which causes losses for the industry. These waste portions can be processed and biologically converted into high-value fiber. A bacterial strain called Stenotrophomonas maltophilia GD1, which can produce several proteins, was isolated from the Sundarban mangrove ecosystem in West Bengal, India, and genetically analyzed via 16S rRNA sequencing. The strain exhibited the ability to produce all three necessary lignocellulolytic enzymes, with the highest levels of laccase and minimal cellulase and pectinase activity. The strain modified the fibers extensively, as determined by Young’s modulus, and removed the color from the toxic industrial dyes. This demonstrates the broad potential of this strain for waste valorization and environmental remediation. Fourier transform infrared spectroscopy (FTIR) and scanning electron microscopy (SEM) confirmed the enhanced fiber quality. Microbial phylogenetic relationships were established using Molecular Evolutionary Genetics Analysis version 11 (MEGA 11).