The present work reports on the development of a novel set of ramie–epoxy composites filled with sponge iron (SI) slag (0–30 wt.%) and on their response to solid particle erosion wear under different test conditions. SI slag is a by-product generated during the processing of SI to steel in arc or induction furnace. While these composites are fabricated using the conventional hand layup technique, the erosion tests are carried out using an air jet erosion tester following ASTM G76 test standard as per Taguchi's L27 orthogonal array. Mechanical characterization of ramie–epoxy composites suggests that the incorporation of SI slag improves their tensile strength by about 52%, flexural strength by 10% and micro-hardness by about 30%. A parametric appraisal of the erosion response carried out using Taguchi method reveals that the filler content, impact velocity and impingement angle are the most significant control factors influencing the erosion rate of these composites. The individual effects of different factors in wider ranges (impact velocity 25–125 m/s, filler content 0–30 wt.% and impingement angle 30–90°) are ascertained by conducting steady-state erosion experiments in controlled conditions. Preference selection index method, which is an effective multi-criteria decision-making tool is used to select the best candidate among all composites based on different physical, mechanical and wear test results. It is found that the composite with 30 wt.% SI slag content displays the optimal combination of properties. The worn morphologies of the eroded surfaces of the composites are studied and analyzed using electron microscopy to identify possible mechanisms causing the wear loss.