A novel hybrid composite is developed by adding redmud as the secondary reinforcing filler with banana/sisal and sisal/glass fiber reinforced polyester composites. The composites are prepared by the hand layup technique followed by compression molding. The tensile, flexural, and impact strength of the composites are investigated by varying the parameters such as particle size (4 and 13 mu m) and weight percentage (2, 4, 6, and 8wt%) of redmud particle addition. The experimental result shows that the addition of redmud enhances the mechanical property of the hybrid composite. The maximum increase of 33% in tensile strength and 54% in flexural strength is observed for the sisal/glass composite and 25% increase in impact strength for the banana/sisal composite. The linear regression analysis is also introduced to predict the errors in the scatter plot. Furthermore, the Scanning Electron Microscopy (SEM) is used to study the effect of redmud on the interfacial bonding in the banana/sisal and sisal/glass fiber reinforced polyester composites.