Study was carried out to develop a composite material from agro waste consisting of sawdust and palm kernel shell and to determine its physical and mechanical properties. The sawdust / palm kernel shell compositions by weight were in the ratios of 100: 0, 90: 10, 80: 20, 70: 30, 60: 40 and 50:50. Urea formaldehyde was used as the test binder at concentrations of 20% of oven dry weight of agro waste. Particle size of agro waste used was 300µm .Yield strength, ultimate tensile strength, modulus of elasticity, modulus of rupture, internal bond strength, density, thickness swelling and water absorption of the formed composite materials were determined and observed to be enhanced at high palm kernel shell composition. The composite composition by weight that gave the best results out of the six compositions tested was the one with sawdust: palm kernel composition of 50%:50% with its properties as: yield strength ( 4.47 N/mm2) ,ultimate tensile strength (7.75 N/mm2), modulus of elasticity (2603 N/mm2), modulus of rupture (16.67 N/mm2 ), internal bond strength ( 0.54 N/mm2 ), thickness swelling (10.30%) ,water absorption (18.90%) and density (996.18kg/m3).