The environmental impact of plastic garbage has increased the need for sustainable biomass-based biodegradable alternatives. Orange peels and banana pseudostems are abundant agricultural waste with pectin, limonene, and cellulose, biopolymers having bioplastic potential. The formulation, characterisation, and performance of a hybrid bioplastic made of banana fibre and orange peel-derived pectin are examined to generate a sustainable material for circular product design. We think lignocellulosic agro-waste and citrus will create a biocomposite with better mechanical properties and environmental deterioration. Banana fibre was alkali and bleached to enhance interfacial compatibility after acid hydrolysis removed pectin. The low-energy cast bioplastic matrix of pectin, alginate, glycerol, and banana fibre (0–20%) was tested for mechanical strength, biodegradability, water absorption, and microstructure. The 15% banana fibre formulation had improved tensile strength (7.595 MPa) and stiffness (66.465 MPa) with balanced elongation at break (11.379%). Soil burial experiments showed 36.11% weight loss after 7 days. At ideal load, scanning electron microscopy showed constant fibre dispersion with low agglomeration. The material’s natural colour and texture enhance product attractiveness and eco-branding. These findings suggest that the orange peel-banana fibre hybrid bioplastic outperforms starch-based films in biodegradability and mechanical integrity and could replace petroleum-derived plastics. The study advances circular design by turning agro-waste into scalable biomaterials for sustainable product innovation.