Water hyacinth (Eichhornia crassipes) is an invasive aquatic plant with high lignocellulosic content, offering potential as a natural fiber resource for craft-based industries. However, its extremely high initial moisture content (≈95%) presents a major challenge in fiber processing, particularly for small-scale industries that rely on traditional sun-drying methods. These methods are highly dependent on weather conditions, prone to contamination, and produce inconsistent fiber quality. This study adopts a research and development (R&D) approach to design and evaluate an innovative dryer machine specifically for water hyacinth fiber processing. The proposed system utilizes LPG-based heating and controlled airflow to achieve stable drying conditions. Experimental results show that the dryer machine can process 10 kg of wet water hyacinth within 280 minutes, significantly shorter than approximately four days required for manual drying. The system reduces the moisture content to below 10%, resulting in improved fiber cleanliness, uniformity, and usability. Although the dried mass produced by the machine is slightly lower compared to manual drying, this is attributed to more effective moisture removal, leading to lower residual water content in the final product. Productivity analysis indicates improved operational consistency and higher processing capacity over extended periods (30–180 days), particularly under varying weather conditions. These findings demonstrate that controlled drying technology provides a reliable and efficient solution for lignocellulosic fiber processing in small-scale industries, contributing to improved material utilization and sustainable biomass management.