This study is based on finding environment friendly economical process for manufacturing of paper sheets. Rice Straw an agro residue based fibrous raw materials has been used for paper manufacturing. The chemical properties of pulping process such as (Kappa number and Residual Alkali) were measured. The mechanical properties such as (breaking length, tensile strength, thickness and double fold) of paper sheets were measured. In the present work, different concentration of sodium hydroxide were varied as (4%NaOH, 6%NaOH, 8%NaOH), liquor to straw ratio of (8:1) , temperature at 170°C and cooking time 1hr and holding time 30min are cooked with digester. The experimental results show that the concentration of sodium hydroxide (6%NaOH), reaction temperature 170°C and cooking time 1hr and holding time 30min. The physical properties of paper sheet are not consistent the standard limiting value, the prepared paper sheets were produced to use the shopping bag. Therefore, strength results are very important in this process. The mechanical properties of paper sheets for 6%NaOH was consistent with the standard limiting value because tensile strength and breaking length results were very acceptable limit. This study will provide a process for manufacturing of paper sheets which can be used in place of plastic bags.