This paper presents an experimental investigation of the hygrothermal and mechanical properties of innovative mortar mixtures reinforced with natural fibers. Fibers extracted from palm stems (PS) and hemp (HF) were evaluated at different percentages. Scanning electron microscope (SEM) observations showed that the PS fibers have rough surfaces and very complex microstructures. Prior to their incorporation into the mortar, the fibers were subjected to different treatments to reduce their hydrophilic character. The employed treatments showed good efficiency in reducing the water absorption of both PS and HF fiber types. Furthermore, the mortar mixtures incorporating these fibers exhibited low thermal conductivity and excellent moisture buffering capacity. Indeed, the moisture buffer value (MBV) of the investigated mixtures ranged between 2.7 [g/(%HR·m²)] and 3.1 [g/(%HR·m²)], hence providing them excellent moisture regulator character. As expected, the fiber mortar mixtures showed very high porosity and low compressive strength ranging between 0.6 and 0.9 MPa after 28 days of age. The low-environmental footprint materials developed in this study are intended for thermal insulation and building filling.