The negative impact of the production and use of building materials on the environment has become evident, so in recent decades, to find more sustainable, eco-friendly, and low-cost materials, the last research tends to reconsider the use of natural fibers and traditional building materials. This paper aims to develop a bio-composite based on the southern Algerian region's local materials consisting mainly of plaster and waste from date palm trees. Many properties were examined experimentally through previous research of our team (physical, mechanical, and microstructure characteristics) [1, 2] to characterize these materials. Several samples of bio-composite of plaster configurations with short length (20mm) and eight-weight ratios (0.5% - 4%) of palm fibers were prepared for mechanical, thermal, and physical characterizations. In addition, tested all previous properties on the specimens after 28 days of curing in normal conditions. The results show a clear improvement in the bio-composites mechanical performance (an increase in the bending strength with achieving compressive strength) and their thermal properties, which have been well developed (density, thermal conductivity, and specific heat capacity). To enhance the resistance of palm fibers to chemical degradation in the plaster's alkaline environment and improve the adhesion between them, these fibers were treated with a NaOH solution of 1% concentration. The plaster's composites reinforced with date palm fibers can be qualified as eco-friendly and thermal insulation building materials.