A multifunctional hybrid particle fiber board from agro-residues comprising paddy straw, wheat straw, and stubble particulates, and from jute fabric with a density in a range of 1.7-2.4 g/cc, wherein the multifunctional hybrid particle fiber board comprises processed fibers with a density in a range of 0.65-1.40 g/cc, a tensile strength in a range of 20-38 MPa, a tensile modulus in range of 0.5-4.55 GPa, a flexural strength 30 to 48 MPa, impact strength in a range of 1220-2650 J/m2, a water absorption capacity in a range of 2-62.34%, a thickness swelling in a range of 3.94-22.13%, and a thermal conductivity in a range of 0.1247 W/mK to 0.4695 W/mK, and wherein said multifunctional hybrid particle fiber board has no emission of volatile organic compounds (VOC) or formaldehyde.