Materials used in the construction industry are mostly man-made and are mainly used in construction projects. However, the huge demand for these materials has increased greenhouse gas emissions, which is associated with an increase in global warming. As these challenges posed by these materials have increased, many companies in the construction industry are opting for the use of sustainable materials, including biodegradable polymers as valuable alternatives. This study aims to explore the prospect of polylactic acid (PLA)/Ghaf bio composites as a green building material. Bio composites with 5%, 10%, and 15% Ghaf by weight were prepared by melt blending and injection molding. Various mechanical tests, thermal insulation, water absorption, thermogravimetric analysis (TGA), and fourier transform infrared spectroscopy (FTIR) were carried out. The study suggested that composites exhibited a significant increase in compression strength, yield strength, elastic modulus, and ductility, compared to pure PLA. The thermal insulation was enhanced, and the water absorption was reduced with Ghaf addition. TGA indicated a change in degradation behavior with increased char residue, whereas FTIR indicated mainly physical interactions between PLA and Ghaf. The bio-composites showed increased strength, stiffness, ductility, thermal insulation, and water resistance, making them promising alternatives to traditional building materials.