The continuous demands for reducing environmental impact and energy consumption are the major driving factors for the development of natural fiber (NF)-reinforced composites (NFRCs). The huge demand for sustainable materials in industries leads to the usage of NFs in product developments. These NFs are more attractive due to their lightweight, cost-effectiveness, ease of availability, and environmentally friendly aspects. Green composites are the best alternatives in place of petroleum-based composites which meet the current industrial requirements. In recent years, researchers are more focused on the development of NF composites as a potential candidate in real-life applications due to economic advantages. This review gives a brief overview of NFs introduction, types, economic aspects, and the recent developments in NFRCs with an analysis of mechanical, thermal, and dielectric properties. Moreover, the water absorption behavior, applications, and challenges in using NFs are also studied in this review. Additionally, this review will motivate the researchers for further developments and exist as foundation literature for upcoming researchers.