This paper investigates the viability of Lightweight Foamed Concrete (LFC) as a sustainable material for semi-structural applications, responding to the increasing need for environmentally friendly and lasting building materials. LFC has heightened brittleness, making it more susceptible to cracking and structural failure under stress; its inadequate mechanical qualities and limited durability diminish its use in engineering applications. This paper aims to improve the compressive strength and reduce the dry shrinkage of LFC by incorporating hybrid fibre reinforcement under a sealed curing condition. The study amalgamates polypropylene (PP) and nylon fibres in a 1:1 ratio with fibre volume fractions of 0.07% PP and 0.33% nylon, thereby enabling a harmonious enhancement of mechanical and durability characteristics. A thorough experimental technique is used, comparing hybrid fibre-reinforced LFC to control mixes (without fibres). The sealed curing method is used to guarantee adequate hydration and replicate actual curing conditions. The findings indicated that hybrid fibre-reinforced LFC showed considerable enhancements in compressive strength and markedly decreased dry shrinkage over a 56-day period. The synergistic interaction between PP and nylon fibres, which improved matrix-fibre adhesion, decreased porosity, and successfully bridged microcracks, is responsible for the enhancement. Hybrid fibre-reinforced LFC exhibited superior mechanical strengths and durability compared to the control mixture, demonstrating enhanced resistance to shrinkage-induced cracking. The results highlight the capability of hybrid fibre systems to overcome the constraints of conventional LFC, making them a feasible choice for semi-structural applications.