Recently, studies are oriented to introduce sustainable materials in construction. This study aims to investigate the effects of sisal fibers on the thermophysical and mechanical properties of compressed earth blocks (CEB) made of local materials by mixing red clayey soil taken from the M'sila region in Algeria and brick waste (BW). First, the maximum percentage of BW is fixed at 20% while respecting the plasticity criteria. Then, the effects of fibers and cement addition on the engineering properties of CEB are analyzed and compared according to fiber and cement contents. Sisal fibers are added with different percentages varying from 0 to 0.5%, while cement content is used with four percentages: 0, 5, 7, and 9% (by wt% of the newly modified soil). Many tests are performed including, capillary absorption rate, thermal conductivity, compressive/tensile strengths, and abrasion resistance. The results showed that the inclusion of sisal fibers improves the thermal insulation of cement-stabilized blocks by up to 21% and strength by 150%. However, it is observed that the hydrophilic character of sisal fibers increases the capillary absorption by 81%, and the abrasion coefficient increases with the increase in fiber content. Furthermore, the investigation revealed that the use of fibers alone is insufficient to ensure the stability of the blocks in moist conditions since the material fully loses its resistance, which requires the total protection of material against any type of infiltration and/or the use of cement as stabilizing agents. As a result, the research showed that sisal fibers may be used in CEB reinforcement, further an environmentally alternative solution was proposed for managing BW by their use in CEB manufacturing as this contributed to sustainability and circular economy strategies.