In the last decade, hybrid composites have been the subject of significant advancements and study. This fast expansion necessitated the development of lightweight composite material with enhanced mechanical strength. In the past few years, the utilization of organic wastes from the food industry, like powder from cow bone, pig bone, and fishbone, has substantially improved the mechanical characteristics of composite materials. Owing to the increasing growth of the meat-based fisheries industry, fish bones are readily available. These bones are often thrown, causing environmental damage. Hence, a sustainable and unique hybrid composite was created employing fish bone powder (FBP) as filler in carbon/jute fibers reinforced polyester matrix. The hybrid composite was compression-molded. FTIR, SEM, and EDS studies were used to characterize the composite. The ASTM standard was used as a reference to explore the mechanical strength (tensile and impact). Additionally explored are the effects of alkali treatment of jute fiber on the above-mentioned processes. It was revealed that the inclusion of FBP and alkali treatment enhanced the mechanical characteristics of the composite. Fishbone powder with a particle size range of 200–250 μm and a weight percentage of 10 to 15% had significant fiber attachment which resulted in improved strength. The produced green composites have proven to be a viable choice for bio-waste treatment in the food sector.