Some additives currently used to enhance drilling mud’s rheological qualities have a substantial economic impact on society. Carboxymethyl cellulose (CMC) and calcium carbonate (CaCO₃) are currently imported. Food crops have influences on food security; hence, this research explored the potential of utilizing cow bone powder (CBP), a bio-waste product and a renewable resource, as an environmentally friendly fluid-loss additive for drilling applications, in comparison with CaCO₃. Both samples (CBP and CaCO₃) were evaluated to determine the most efficient powder sizes (coarse, medium, and fine powder), concentrations (5–15 g), and aging conditions (before or after aging) that would offer improved rheological and fluid-loss control. The results obtained showed that CBP had a significant impact on mud rheology when compared to CaCO₃. Decreasing the particle size (coarse to fine particles) and increasing the concentration from 5 to 15 g positively impacted mud rheology. Among all the conditions analyzed, fine-particle CBP with a 15 g concentration produced the best characteristics, including in the apparent viscosity (37 cP), plastic viscosity (29 cP), and yield point (25.5 lb/100 ft²), and a gel strength of 16 lb/100 ft² (10 s) and 28 lb/100 ft² (10 min). The filtration control ability of CaCO₃ was observed to be better than that of the coarse and medium CBP particle sizes; however, fine-particle-size CBP demonstrated a 6.1% and 34.6% fluid-loss reduction at 10 g and 15 g concentrations when compared to respective amounts of CaCO₃. The thermal behavior of the Mud Samples demonstrated that it positively impacted rheology before aging. In contrast, after aging, it exhibited a negative effect where samples grew more viscous and exceeded the API standard range for mud properties. Therefore, CBP’s excellent rheological and fluid-loss control ability makes it a potential, sustainable, and economically viable alternative to conventional materials. This superior performance enhances the thinning properties of drilling muds in stationary and circulating conditions.