Natural fiber reinforced composites are eco-friendly and have a good potential to replace contemporary composites and structural metals in many applications. Owing to its versatility and biodegradability, application of jute fibers as reinforcement in the development of composite materials has increased nowadays. Additionally, industrial waste generated is being dumped indiscriminately in dump yards or in water bodies polluting air, water and land. One such industrial waste is lime sludge waste derived from the paper and pulp, carbide, soda ash and fertilizer industries which accounts for almost 4.5 million tons per annum in India itself. Lime sludge mainly consists of lime as calcium carbonate (CaCO3) along with a few amounts of ceramic oxides. It pollutes the environment nearby and posing as an environmental hazard in terms of human health issues. The current research aims to highlight the concerns and challenges faced during the development of green composite and investigation of their mechanical properties. Jute fiber reinforced epoxy composites were fabricated with 10, 20 and 30 wt% fibre and their mechanical (tensile test, flexural test and impact test) and thermal characteristics were investigated. It was observed that 20 wt% jute fiber composite yielded the best mechanical and thermal properties. Hence, lime sludge waste was added as filler (3, 5, 7, 9 and 12 wt%) with 20% jute fiber reinforced epoxy composites. It was observed that addition of 7 wt% lime sludge content to 20 wt% jute fiber reinforced epoxy composites yielded the best mechanical properties among them. Moreover, thermal characterization showed that with increase in the fiber percentage the amount of thermal degradation decreases. Thus, reuse of an industrial waste and an eco-friendly natural jute fiber in producing a polymeric composite provided satisfactory results in addition to providing alternative ways of waste reuse and production of green composites. © 2023, The Institution of Engineers (India).