This paper presents a study on the development of Natural fibre reinforced plastic composite from the waste polystyrene and rice husk, a new class of composites consisting of polystyrene based resin reinforced with rice husk fibre. Four different sets of polystyrene/rice husk composites were fabricated with addition of 10, 20, 30 and 40 wt% of rice husk particulates. Tensile and water absorbing properties of these composites were evaluated as per ASTM standard. Tests for water absorption were performed by immersing the samples in a bath of distilled water at room temperature and water uptake was measured gravimetrically along the process. It was observed that young modulus, force at peak, percentage water absorbed and diffusion coefficient of the composite increased while elongation at peak force decreased with addition of rice husk in the PBR matrix. The highest values of young modulus, force at peak, diffusion coefficients and elongation at peak force at 40 % rice husk content are: 365 N/mm2, 562 N, 1.77E-04 mm2/s and 0.76 % respectively. The recycled rice husk in combination with the PBR has produced plastic composite with moderate tensile and water absorbing properties applicable in various application