Large amounts of textile waste are generated annually, and postconsumer blended fiber textiles are particularly challenging to recycle due to difficulties in sorting and limited recycling options, often leading to downcycling or landfilling. This study aimed to create composites from discarded textiles by compressing air-laid nonwoven sheets made from waste viscose and a thermoplastic binder fiber. Ten composite samples, incorporating different types of viscose fibers, were produced using both pre- and postconsumer fabrics to assess the impact of consumer usage, dye presence, and elastane on the composites. A 0.1 wt% NaOH treatment was applied to some postconsumer samples to remove impurities. Mechanical and thermal properties were evaluated using tensile, 3-point bending, impact testing, thermogravimetric analysis, and Fourier transform infrared spectroscopy. The suitability of the composites for packaging applications was also explored, and pilot-scale production demonstrated promising potential for upscaling the process for commercial use.