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The utilization of synthetic materials stimulates environmental concerns, and researchers worldwide are effectively reacting to environmental concerns by transitioning towards biodegradable and sustainable materials. Natural fibers like jute and sisal have been being utilized for ages in several applications, such as ropes, building materials, particle boards, etc. The absence of essential information in preparing the natural-fiber-reinforced materials is still a challenge for future applications. Chemical treatments and surface modifications can improve the quality of the natural fibers. Natural-fiber-based composites are a potential candidate for many lightweight engineering applications with significant mechanical properties. In the view of the progressive literature reported in the field, this work aims to present the significance of natural fibers, their composites, and the main factors influencing these materials for various applications (automotive industry, for instance). Secondly, we aim to address different surface modifications and chemical treatments on natural fibers and finally provide an overview of natural fiber reinforced polymer composites’ potential applications.