In this study, natural sawdust fillers from acacia were mixed with unsaturated polyester resin (UPR), which was prepared by recycling of polyethylene terephthalate (PET) waste bottles to prepare sawdust/UPR composite. PET wastes were recycled through glycolysis and depolymerized to produce a formulation for the resin. The effects of alkali treatment, filler content, and filler size on the tensile, flexural, hardness, and water absorption of the composites were investigated. The results show that the modulus of both tensile and flexural increased with increasing filler contents, but the tensile and flexural strength of composites decreased. The size of sawdust also played a significant role in the mechanical properties, with smaller size sawdust producing higher strength and modulus. This is due to the greater surface area for filler-matrix interaction. The results also show that alkali treatment causes a better adhesion between sawdust and UPR matrix and improves the mechanical properties of the composites. Furthermore, surface treatment reduced the water absorption of composites. © 2008 Wiley Periodicals, Inc.