Agricultural lignocellulosic fiber (rice straw)-waste tire particle composite boards were manufactured for use as insulation boards in construction, using the same method as that used in the wood-based panel industry. The manufacturing parameters were: a specific gravity of 0.8 and a rice straw content (10/90, 20/80 and 30/70 by wt.% of rice straw/waste tire particle). A commercial polyurethane adhesive for rubber was used as the composite binder. The water proof, water absorption and thickness swelling properties of the composite boards were better than those of wood particleboard. Furthermore, the flexibility and flexural properties of the composite boards were superior to those of other wood-based panel products. The composite boards also demonstrated good acoustical insulation, electrical insulation, anti-caustic and anti-rot properties. These boards can be used to prevent impact damage, are easily modifiable and are inexpensive. They are able to be used as a substitute for insulation boards and other flexural materials in construction.