Nanofibers are one of the most attractive materials in various applications due to their unique properties and promising characteristics for the next generation of materials in the fields of energy, environment, and health. Among the many fabrication methods, electrospinning is one of the most efficient technologies which has brought about remarkable progress in the fabrication of nanofibers with high surface area, high aspect ratio, and porosity features. However, neat nanofibers generally have low mechanical strength, thermal instability, and limited functionalities. Therefore, composite and modified structures of electrospun nanofibers have been developed to improve the advantages of nanofibers and overcome their drawbacks. The combination of electrospinning technology and high-quality nanomaterials via materials science advances as well as new modification techniques have led to the fabrication of composite and modified nanofibers with desired properties for different applications. In this review, we present the recent progress on the fabrication and applications of electrospun nanofiber composites to sketch a progress line for advancements in various categories. Firstly, the different methods for fabrication of composite and modified nanofibers have been investigated. Then, the current innovations of composite nanofibers in environmental, healthcare, and energy fields have been described, and the improvements in each field are explained in detail. The continued growth of composite and modified nanofiber technology reveals its versatile properties that offer alternatives for many of current industrial and domestic issues and applications.