Recently, green products are essential requirements. This work deals with synthesizing novel formaldehyde-scavenger based on black liquor to enhance the urea-formaldehyde (UF) adhesive for production of eco-friendly bio-composites. These HCHO-scavengers are synthesized from black liquor-based aerogel precursors. The assessment is carried out via estimating the HCHO adsorption capacities versus type of black liquor; as well as its beneficial effect on characterization of UF adhesive (Differential Scanning Calorimetry (DSC)-curing temperature; gel time and adhesive strength). The UF-scavenger system, which provides palm fiber-composite with properties (static bending, internal bond, and free-HCHO) compliance with the standard specifications is optimized. The data evidenced the effective role of black liquor (BL) from alkali pulping RS in presence of borohydride in resulting aerogel precursor of scavenger with higher HCHO-adsorption capacities (∼64 mg/g) than that produced from native aerogels (AG) in absence of BL. The kinetic adsorption is most applicable with the pseudo-second order equation. This observed behavior reflected on reducing the gel time and improved the bond strength of scavenger (Scv)-UF systems. It is interesting to note that all investigated BL-scavengers provide reduction in free HCHO of palm composites (from 30.7 mg/100g to 5–11 mg/g). These values are lower than that obtained from scavengers in absence of BLs (17.4 mg/100g). Based on the value of free-HCHO and mechanical properties, we recommend the scavenger resulted from black liquor of alkali pulping RS in presence of anthraquinone and borohydride (NaOH-AQ-BH) of screened RS as effective scavenger to provided eco-palm-wood composites with MOR, MOE, IB, free-HCHO and thickness swelling ∼ 27 MPa, 0.72 MPa, 7157 MPa, 7 % and 11 %, respectively. According to international standard specifications this type of palm-composite fulfills the grade H-3 and E1 according to environmental specification.