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The availability of the raw materials needed to produce fibre is decreasing as demand for fibre increases over time. In an effort, to preserve natural biodiversity and improve waste management, this research aims to substitute available raw materials for wood fibres. Empty fruit bunch (EFB) is regarded as waste in the oil palm industry and is abundantly available as a renewable energy source, particularly in Southeast Asian countries. The primary objective of this study is to investigate the utilisation of EFB as a substitute for insulating paper in transformers. The morphology, degree of polymerization, tensile strength, thermal characteristics, permittivity, conductivity, and electrical properties (breakdown field strength and lightning impulse performance) of EFB were measured and compared to the properties of Kraft insulating paper. Using FESEM at a magnification of $500\times $ , the morphological properties were examined. Based on FTIR measurement, the chemical bonding between Kraft and EFB samples varied slightly. Compared to EFB, Kraft-pulped insulating paper has a higher degree of polymerization and the ability to endure high temperatures. Furthermore, the breakdown field strength performance demonstrates that Kraft insulating paper is 20.30% higher than EFB insulating paper. In terms of tensile strength and lightning impulse, EFB insulating paper demonstrated comparable performance to conventional insulating paper. A new approach to the manufacturing of EFB insulating paper could result in improvements to the material’s insulation qualities.