The major aim of this study is to find an alternative material that can replace existing synthetic fibers to mitigate environmental depletion while offering low cost, high availability, reduced energy requirements for manufacturing, and improved mechanical and dynamic properties. In this study, AW106 epoxy resin along with HV953 hardener was used as the matrix material. Reinforcement materials from short and random Saccharum munja were considered at volume ratios of 10, 15, 20, and 25%. Compression molding techniques were employed to fabricate different composite laminates. The mechanical properties of the composite laminates were analyzed using tensile and flexural tests, revealing that the 20% Saccharum munja fiber composite exhibited better mechanical properties with tensile and flexural strengths of 110 and 130 MPa, respectively, compared to other composite combinations. The mechanical properties increased with an increase in the fiber volume fraction up to 20%; however, further addition of Saccharum munja fiber had a negative effect. Natural frequencies and modal damping factors were calculated using an experimental setup and FEA (ANSYS 2022 R1), utilizing a cantilever beam specimen with dimensions of 160 mm × 10 mm × 4 mm for free vibration analysis. The well-known half-power bandwidth method was employed for the calculation of the damping factor. The first natural frequency, also known as the fundamental frequency, along with the corresponding damping factors obtained for NR, SP1, SP2, SP3, and SP4, were found to be 18 Hz (0.162), 29 Hz (0.074), 34 Hz (0.071), 39 Hz (0.054), and 31 Hz (0.057), respectively. Natural frequencies and damping factor values for the 20% Saccharum munja fiber composite were better than other composite combinations. The worst results were obtained for the 25% Saccharum munja fiber composite. The nondimensional frequency response of the 20% Saccharum munja fiber composite was better than other composite combinations.