Yerba mate waste based urea fertilizer capsules were obtained and characterized. Yerba mate powder (YMP) content in these encapsulation systems ranged from 52 to 82% for the different formulations. The aim of the study was to evaluate the effect of yerba mate powder:calcium alginate ratio and the assay temperature on capsule degradation and urea release rate in soil. Degradation evolution was monitored by microbiological tests, environmental scanning electronic microscopy, differential scanning calorimetry and Fourier transform infrared spectrometry. Encapsulation efficiency increased with YMP content. The green fertilizing systems generated did not inhibit microorganism development in soil. Degradation was slower for capsules with higher YMP content. Capsules with high YMP content released lower amounts of urea. Both degradation and release rates increased with assay temperature. The recycling of yerba mate powder as a green composite material originated a new fertilizer system.