This study investigates the full production and characterisation chain of an eco-innovative polymer composite — designated DMP (Downcycled Mixed Plastic) — manufactured from hard-to-recycle, contaminated plastic waste streams via a continuous single-screw extrusion process. The composite, comprising approximately 60–70% polyethylene (PE), 20–30% polypropylene (PP), and 5–10% other polymers (ABS, PET, PS) with 2% impurities, was characterised by differential scanning calorimetry (DSC), density measurement, tensile testing (SR EN ISO 527-1:2020 / SR EN ISO 527-2:2012), impact resistance, bending, compressive strength, wear resistance (Bohme method), water absorption, thermal resistance, and microbiological analysis, performed by accredited Romanian laboratories. The single-screw extruder (D = 150 mm, L/D = 17.3, 30 rpm, barrel 200–220 °C, die 80–120 °C, pressure 60–120 MPa) converts unsorted, unwashed mixed polyolefin waste into dimensionally stable construction profiles without compatibilisers or virgin polymer input. DSC confirmed PE (softening 50–114 °C), PP homopolymer (melt 200–212 °C, crystallisation ~230 °C), and PP copolymer (melt 219–235 °C) fractions. Tensile strength was 9.22 ± 0.38 MPa (elongation 112.8 ± 8.4%, n = 5, unexposed); after 300 h UV weathering: 10.28 ± 0.42 MPa (76.6 ± 5.8%); after 50 freeze–thaw cycles: 9.55 ± 0.35 MPa (57.3 ± 4.9%). Compressive strength: 14.5 ± 0.9 MPa; static failure load: 29.03 ± 1.2 kN; thermal conductivity: 0.162 ± 0.008 W/m·K. All values meet applicable standard reference thresholds. Results confirm DMP composites as technically viable for non-structural load-bearing construction applications while diverting non-recyclable waste from landfill and incineration.