This research intends to examine the potential of incorporating waste materials in place of coarse aggregates to augment the mechanical characteristics and thermal insulation of lightweight foamed concrete (LWFC), along with the inclusion of polypropylene (PP) fibres. The PP fibre exhibits excellent tensile strength and enhancement on thermal insulation properties of cementitious materials. In this study, eco-friendly bio-based oil palm shell (OPS) and robust solid polyurethane (SPU) aggregates derived from industrial waste were utilized as substitutes for conventional aggregates. Additionally, silica fume was partially incorporated as supplementary cementitious materials. The addition of PP fibre impacted the workability of the LWFC with the inverted slump value decreased by 1.7 �17.5 . The inclusion of PP fibre proportion increased from 0 to 0.5 revealed a positive result in mechanical properties and thermal insulation performance. The OPSSPU/0.5 showed the significantly increment of 40.4 compressive strength, 102.9 of splitting tensile strength, and 70.8 flexural strength, respectively. The optimum result was obtained in the OPSSPU/0.5 mixture, which exhibited 3.74 MPa residual compressive strength. Furthermore, utilizing PP fibres brought about a significant reduction in thermal conductivity in the environmentally sustainable LWFC, leading to improvements ranging from 0.2 to 16.3 when compared to the control composition. Thus, these findings are essential for encouraging the adoption of such practices in the construction industry and contributing to the reduction of environmental impacts associated with sustainable concrete production. © 2024 Elsevier Ltd