The valorization of agro-industrial waste represents a key strategy for sustainability and the circular economy. This study focused on the utilization of passion fruit (Passiflora ligularis) peel, an abundant byproduct in the fruit industry. The main objective was to develop a process for extracting hydrocolloids from passion fruit peel, formulate adhesives, and evaluate their application in the creation of engineered wood-like composite materials. Passion fruits were morphometrically characterized, yielding 47.3% of the peel by weight. The acid extraction and ethanol precipitation process yielded 2.605% of hydrocolloids obtained from dry peel. Three adhesive samples were prepared with hydrocolloid concentrations of 1.25%, 2.5%, and 5%, yielding viscosities of 1500 cP, 2500 cP, and 5000 cP, respectively, after 24 h. For the development of the composite material, dried and ground passion fruit peel was used as a filler, combined with the formulated adhesives. Impact resistance tests revealed that the formulation with 5% hydrocolloids (sample C) exhibited the best performance, with a total absorbed energy of 2.205 J and an impact resistance index of 11.34 impacts/J, significantly outperforming the lower concentration formulations.