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The current research has produced engineering plastics composite for automotive applications using waste recycled plastic recycled polyethylene terephthalate (RPET) bottles as the matrix and compounded with chemically modified natural kenaf fibers in comparison with virgin polyethylene terephthalate (PET) composites under the same processing conditions. Kenaf fibers were surface modified by alkali and epoxy coating treatment methods. The waste RPET bottles which were mechanically recycled were pulverized using a 5 mm mesh size aperture into flakes and melt‐mixed with 10 wt% of short kenaf fibers in a twin‐screw extruder and compression‐molded at 240°С optimized temperature. Mechanical and thermal analyses were performed on both RPET, virgin PET (VPET), and their constituent kenaf composites. Scanning electron microscopy (SEM) was carried out to assess the composite's morphological characteristics. The results show that both treated (TKF/RPET and TKF/VPET) composites gave higher mechanical properties compared to untreated (KF/RPET and KF/VPET) composites. RPET and its constituent composites show higher impact properties than VPET composites. However, the tensile and flexural strength of VPET composites was higher than that of recycled RPET composites. RPET and VPET showed melting peak temperatures of 252.9°C and 245.8°C respectively. Both treated TKF/RPET and TKF/VPET composites were more thermally stable and decomposed at higher temperatures compared to the untreated composites. The SEM results for both treated composites showed a strong fiber/matrix adhesion with no clear evidence of fiber degradation as compared to untreated composites. It can be concluded that RPET possessed similar thermal properties compared to its virgin counterpart and can serve as a substitute for virgin PET in the composite formulation. [ABSTRACT FROM AUTHOR]