Natural fibers are of the good substitute sources for swapping synthetic fibers and reinforcing polymer matrices because of their contributions in maintaining of ecology, low energy requirement for processing and sustainability. The aim of this study is to characterize new fiber from Cyperus Dichrostachus A.Rich (CDA) plant. The CDA plant is a perennial non woody grass found in Ethiopian high lands and river basins. The fiber from this plant has good chemical composition of Cellulose (60.27%), hemicellulose (22.72%), lignin (16.59%) contents. It is light fiber having a density of 1010kg/m3 and good tenacity behaviour of 105.76cN/Tex with low elongation of 4.88%. The thermal stability of Cyperus Dicrostachys A,Rich fiber (CDAF) was studied using TGA and DTG analysis and revealed that the cellulose degraded at a temperature of 377.1°C. Fourier transform-infrared spectroscopy analysis confirmed that CDAF is rich in cellulose content. Furthermore, the properties of CDAF ensured that it can play a vital role as new reinforcement material and best alternative in bio composite industries. This will give competitive advantages when evaluated with other natural fibers reveals that there are significant potential benefits in implementation of “cleaner production” in textile material production industries. Specifically, replacement of synthetic fiber source with renewable biomass will reduce the environmental impact of these fibers. The future study will entail on investigating the possible valorization route especially in paper board, composite reinforcement and bio composite applications.