This study created biomass-pellet fuel with reduced ash content from agarwood waste mixed with empty palm bunches (ACW+EPB), and from agarwood waste with rubber wood sawdust (ACW+RWS), utilizing the low ash value of the agarwood waste. The tested blends had a 1:1 ratio of agarwood waste and empty palm bunches, and a 1:3 ratio of agarwood waste and rubber wood sawdust. Comparisons were also conducted relative to Korean (Grade 4) (2014) and ENplus B (2014) commercial pellet standards. Before pressure molding, the mixture components were dried and ground in a pelletizing device with a motor power of 7.5 kW (380 V, 50 Hz), yielding 100 to 150 kg/h without added adhesive. The test results showed that ACW ash content decreased in the RWS hybrid, yet increased in the EPB mixture. The attributes of ash content, moisture content, and heating value of ACW+RWS satisfied ENplus B (2014) and Korean (Grade 4) (2014) standards at 1.70%, 4.50%, and 4,536 kcal/kg. The ACW+EPB also satisfied the Korean (Grade 4) standard at 4.20%, 6.50%, and 4,220 kcal/kg. Thus, the biomass pellets from the mixture of agarwood waste and rubber wood sawdust and that of agarwood waste and empty palm bunches were of suitable quality for commercial purposes.