Over the years, kenaf fibre has shown diversity in industrial utilization with increasing number of potential commercial products such as automobile products development, building and semi-structural applications, variety of applications in the field of medicine, plastic and packaging materials, pulp and paper production, agro-sack production, geo-textile applications, substrate for mushroom cultivation, absorption particles, bioremediation and oil spill clean-up etc. The unique properties of kenaf fibre and its short life cycle of 130-150 days have kept it competitive in the market. This research investigates the effect of size reduction on the mechanical properties of fabricated kenaf micro particle reinforced composite for the production of Non-Metallic Vehicle Parts. Thermosetting matrix was used on Hand layup contact molding technique with varying fibre loading of 0%, 10%, 20%, 30% and 40%  of Ball milled and screened micro particle sizes of 120 µm, 100 µm and 80 µm respectively. The results showed that the optimum fibre loading and particle size for achieving highest tensile strength of reinforced composite was 30% and 80 µm respectively. The elongation at break of the composite decreased as the fibre loading increased. The environmental stability of reinforced composite was studied using ASTM standard D-570. It was also observed that the fabricated composite sheets applying optimum fibre loading and particle size were stable to an aggressive hygrothermal environment. Prototype packaging material was fabricated and this project gears towards attaining Nanoparticles (K-NPs) for strength enhanced and biocompatibility. Composite materials has gained significant momentum in recent years and has become highly competitive due to its diverse industrial applications, new products have appeared in the market with newly developed materials and sophisticated structural designs. These products are fabricated from different reinforcement and processes that enhance product integrity. Composite materials have become very attractive for their applications in the field of engineering and advance material development. The society requires scientists and manufacturers to focus research on sustainable materials, biodegradable, energy efficient processes due to the increasing concern about our environment. This demand clearly favours greater usage of natural fibres due its convenient renewability, biodegradability, environmentally friendliness and acceptable mechanical properties. Natural fibres such as kenaf, hemp, jute, flax etc have been used by various researchers as reinforcement for thermosetting or thermoplastic composite fabrication.