The research on the use of new materials and products made from renewable resources maximizing the utilisation of environmentally sustainable raw materials is increasingly coming into focus worldwide. The present study reports the results of examining the hemp fibre bundle mechanical properties such as their strength for two hemp varieties grown in Latvia. The production and properties of hemp nonwoven fabrics made by carding and hydroentangling are also characterized. The hydroentangled hemp nonwoven materials are described by determining their dimensional properties, water vapour transmission, pore size distribution and thermal properties in order to ensure their suitability as alternative insulation materials. The experimental results of developing and testing nonwoven insulation materials from hemp fibre show that hydro-entanglement is a good technology for hemp fibre processing, enabling the possibility to obtain nonwoven materials with predefined properties according to the intended use. Good water vapour permeability of a relatively large thickness range allows to apply hydroentangled nonwoven hemp fiber materials in natural breathing packet formation for household, industrial and construction uses. The results of the study reveal new opportunities of developing local, Latvian hemp genotype Purini as a fiber hemp variety with a wide range of potential applications, and its processing not only by conventional, but also highly yielding, advanced technologies, thus, obtaining products with a high added value.