The current research on the development and performance evaluation of unique composites focuses on an unexplored combination of fibers of PBO (polybenzoxazole Zylon) as reinforcement and PEEK (polyetheretherketone) as a matrix. Their fibers were braided in equal ratios and then compression-molded to develop composites by manipulating all long fibers in one direction (unidirectional, a UD composite) and for the other one half in one direction and the remaining half in the perpendicular direction (bidirectional, a BD composite). The performance was evaluated by hardness (micro- and scratch) studies followed by tensile and impact strength. Furthermore, the lap shear strength of the adhesive joints developed with these fibers in various orientations was also analyzed. The performance properties were compared with those of neat PEEK. It was observed that an exceptional increase compared to neat PEEK in impact strength of 10,000% and tensile strength of 662% was achieved in the case of the UD composite. Scanning electron microscopy (SEM) and microcomputed X-ray tomography were used on failed specimens to analyze the reasons for failure.