Recently, there has been interest in the development of hybrid composites for diverse industrial applications. In this aspect, this paper explores the mechanical (tensile, flexural, impact, and dynamic mechanical analysis) and water (distilled and seawater) absorption properties of palmyra palm leaf stalk/carbon fiber‐based composites. Hybrid composites with various reinforcement weight ratios were manufactured for the experiment employing the compression molding procedure. To analyze the hybridization effect, composites with a single reinforcement were also produced and evaluated. The results demonstrated that adding carbon fiber to palmyra fiber in the matrix enhances the composites' overall mechanical properties. Field emission scanning electron microscope (FESEM) was used to assess the broken surface of mechanically tested composites to better comprehend the failure causes. The findings of the moisture absorption test have shown that using carbon fiber in composites reduces moisture absorption due to their hydrophobic behavior. In addition, the specimens dipped in seawater absorbed more water due to the higher pH value of seawater and gained more weight due to salt deposition. The results of this study indicate that the hybrid composite formulation P25C75 exhibits a balance between its mechanical properties and environmental resilience, making it a possible lightweight material for structural applications.