Agro-industrial wastes are sustainable resources that have advantages as a reinforcement for polymeric matrices. This study examined the use of banana rachis fiber (BRF) in reinforcing the recycled high-density polyethylene (rHDPE) matrix. For this purpose, polymer composites with 5–20 wt% of BRF were prepared by the extrusion process using a twin-screw extruder and followed a hot press method. The structure of rHDPE/BRF composites and their characteristic peaks of degradation were successfully identified by the Fourier-transformed infrared spectroscopy and thermogravimetric analysis techniques, respectively, revealing a good dispersion of BRF in rHDPE. Differential scanning calorimetry results of the composites demonstrated that melt enthalpy decreases as the amount of BRF increases. XRD diffractograms revealed a crystallinity reduction of rHDPE due to the increase of fiber within the polymer matrix, which is reflected in the characteristic peaks' intensity decrease of HDPE. Variation in thermal and chemical properties with the addition of BRF in rHDPE was successfully evaluated in this study. Life cycle assessment for 1 kg composite production has also been evaluated. The banana rachis-rHDPE composite materials reduce the overall environmental impacts when the filler concentration increases.