This study investigates the synergistic effect of bacterial strains, paper sludge ash (PSA), and coconut fibres (CF) on the mechanical performance, durability, and self-healing capacity of lightweight aggregate concrete. A novel bacterial-grouted system was developed by partially replacing cement with 15% PSA, reinforcing the matrix with 0.5% CF, and incorporating Bacillus subtilis to induce microbial-induced calcium carbonate precipitation (MICP). The results demonstrated that the combined mix (CC+PSA+CF+BS) exhibited superior strength development, achieving up to 21.6% higher compressive strength and 35% greater impact energy than control concrete at 90 days. Enhanced UPV values confirmed the densification of the microstructure, while Cantabro loss reductions indicated improved abrasion resistance. The findings highlight that microbial precipitation, pozzolanic reactivity, and fibre bridging collectively improve crack resistance and long-term durability. This hybrid approach establishes an environmentally sustainable, high-performance concrete composite suitable for structural applications exposed to dynamic and abrasive environments.