Sisal fiber (SF) reinforced sheet molding compound (SMC) was prepared by compression molding technology. The fiber reinforced polymer (FRP) waste was added to replace calcium carbonate, which could be regarded as an effective solution of FRP waste. FRP loading of 20, 25, 30, and 35 wt% were incorporated to matrix and the mechanical, thermal stability, and water absorption of the SF‐SMC were investigated. The results of Fourier transform infrared spectroscopy confirmed that the silane coupling agent was successfully grafted on the surface of FRP waste. Scanning electron microscopy (SEM) was used to observe the surface micro‐structure of SF and FRP waste. Thermogravimetric analysis was used to investigate the thermal stability of the FRP waste and SF‐SMC. Water absorption and water contact of the SF‐SMC were also tested. SF‐SMC fabricated with 30 wt% FRP waste powder possessed the best mechanical, thermal, and water absorption property due to the good interfacial adhesion between fibers and matrix. POLYM. COMPOS., 39:1896–1904, 2018. © 2016 Society of Plastics Engineers