In this paper, the flame-retardant wall paper was successfully prepared with recycled polyethylene terephthalate (PET) short cut fiber with flame-retardant property and wood pulp using polyvinyl alcohol (PVA) as binder followed by treatment of non-halogen flame retardant. Physical properties such as formation index, tensile strength, elongation, and burst strength increased as defibrillation increased except tear strength. Bulk increased but formation index, tensile strength, elongation and burst strength decreased along with addition of PET short cut fiber. It was also found that tear strength rose significantly up to 30% of PET short cut fiber and then declined (fell) rapidly. As addition level of PVA increased tensile strength, elongation and burst strength increased, but tear strength decreased slightly. Addition of 20% of PET short cut fiber and 13% of PVA provided the flame-retardant wall paper with both improved flameproofing and physical properties.