The recent decade has witnessed significant innovations and research in the field of hybrid composites. This rapid growth warranted the development of lightweight composite with higher mechanical strength. The use of bio‐waste like cow bone powder and fishbone powder from food industries has shown significant enhancement in the mechanical properties of composites in recent past. Owing to the large number of pigs slaughtered daily for meat, porcine bones are readily available. Most of the time, these bones end up as waste, polluting the environment. In view of this, an attempt has been made to develop a sustainable and innovant hybrid composite using porcine bone powder (PBP) as filler, and carbon/jute fibers as reinforcement in a polyester matrix. The compression molding technique was used to develop the hybrid composite. Characterization of the developed composite was investigated by image processing, scanning electron microscopy, energy dispersive spectroscopy and Fourier transform infrared spectroscopy analysis. The influence of PBP percentage and size, on tensile strength, impact strength, and surface hardness were studied as per ASTM standard. In addition, the effects of alkali treatment of jute fiber on the above‐mentioned responses have also been studied. It was found that the mechanical strength of the hybrid composite was enhanced by the addition of PBP and alkali treatment. SEM images revealed that PBP with size 50–200 μm and weight percent from 10% to 15% demonstrated good bonding with the fibers. The developed hybrid composites demonstrated to be a sustainable solution to the bio‐waste management from the food industry. [ABSTRACT FROM AUTHOR]