This paper investigates the processing parameters for the compression molding of hemp/PLA hybrid yarn biocomposites and their effect on the final mechanical properties. Finite element simulations are used to develop and assess the processing parameters, pressure, temperature, and time. These parameters are then evaluated experimentally by producing the composites by two different methods, to compare the results of experimentally determined processing conditions to parameters determined by the simulation analysis. The assessment of mechanical properties is done with several experimental tests, showing small improvements for the composites produced with the simulation method. The application of the simulation analysis results in considerably reduced processing times, from the initial 10 min to only three minutes, thereby vastly improving the processing method. While the employed methods are not yet able to produce composites with greatly improved mechanical properties, this study can be seen as a constructive approach, which has the ability to lead to further improvements.