Due to different environmental challenges, using sustainable materials has become increasingly important. Mycelium-based materials show promising potential in many applications within architecture, such as sustainable acoustic absorbers. Here we present results on the acoustic and thermal performance of mycelium panels that use paper waste as substrate for the growth of Pleurotus Ostreatus. Regarding the substrate choice, the potential application of the widely accessible residue material in combination with acoustic application was examined. Mycelium-based materials show a sustainable life cycle, which is amplified by using residual materials as a base. The panels were created using different growing times and mixtures of inoculated and non-inoculated substrate and dried in convection ovens to deactivate the fungi and remove the moisture excess. Samples were tested using an in-situ method with a PressureParticle velocity probe (PU probe). The acoustic absorption turns out to be highly dependent on the processing method, growing time and mixture use, though overall maximum absorption is found around 1kHz. The thermal conductivity was found to be around 0.07 W/(m.K).