ABSTRACT This study aimed to establish a sustainable fabrication method for packaging paper using a Potassium-based delignification alkali; banana peel lye (BPL) to pulp banana stem fibers. This was an experimental study where Caustic soda was used as a positive control. The packaging paper was constructed using a handmade craft method described by TAPPI 2002. The packaging properties were tested according to the KEBS EAS 859:2017 standard for packaging, which outlines the minimum/maximum requirement for three properties; bursting strength, tearing resistance, and water absorbency. The results indicate that the pulping process using BPL yielded more fiber than the NaOH pulping process at 68% and 56%, respectively. The test results for the packaging paper revealed that BPL and NaOH packaging paper surpassed the minimum KEBS requirement for bursting strength and tearing resistance however it had a high water absorbency rate. The property tests statistical analysis showed that for all three tests, there was no significant difference between the packaging papers made with BPL and those made from NaOH indicating that BPL is a suitable replacement for NaOH. Further research is recommended to improve water absorption properties as well as to experiment with surface enhancement treatments such as dyeing.