Several useful composite materials have been developed with natural fiber and plastic matrices, and their commercial viability has been established in terms of adding value to abundant and cheap natural resources. The Macromolecular Research Centre, Jabalpur, India, has recently developed composite from waste newspaper reinforced with plastic material using a prepreg technique wherein the matrix resin consists of resol type phenolic resin (PR) and bifunctional epoxy resin (EP) condensate. Laminates of newspaper and PR-EP condensate were prepared by hot press molding, and the newspaper weight fraction in these composites was varied from 0.30 to 0.65. The mechanical properties of five selected newspaper (PR-EP) condensate composites are reported for parameters such as ultimate tensile strength, elongation, tensile modulus, flexural strength and modulus, and heat deflection temperature (HDT). The water uptake behavior of these composites was examined by constructing water absorption isotherms, and the water diffusion coefficient and water absorption (24 h soak test) were determined. The specific tensile and flexural strengths and modulus properties of newspaper-(PR-EP) condensate composites are found comparable with one prepared elsewhere from recyclable newspaper-reinforced polypropylene thermoplastics.