Xuan-paper waste residue (XPWR) is an unfamiliar and unique solid waste in China, which caused serious environmental pollution and waste of resources. Therefore, it is extremely important to explore the characteristics of XPWR and its application. In this paper, XPWR was analyzed and used as a reinforcing filler to prepare red mud/waste polyethylene/Xuan-paper waste residue (RM/WPE/XPWR) composites by molding method at 160 °C with a pressure of 10 MPa for 5−10 min. There were about 27 wt% of mineral particles and 63 wt% of organic fibers in XPWR, indicating that XPWR can be used as a reinforcing filler. When 60 wt% of XPWR was added in RM/WPE, the bending strength reached 71.81 MPa, which surpassed 43.08 % than that of RM/WPE. Besides, the addition of XPWR increased the water absorption of the composites and helped to promote the crystallization of the composites. This work presented the characteristics of XPWR and provided a new way to use XPWR.