Composite materials reinforced with biofibers and nanomaterials are becoming considerably popular, especially for their light weight, strength, exceptional stiffness, flexural rigidity, damping property, longevity, corrosion, biodegradability, antibacterial, and fire-resistant properties. Beside the traditional thermoplastic and thermosetting polymers, nanoparticles are also receiving attention in terms of their potential to improve the functionality and mechanical performances of biocomposites. These remarkable characteristics have made nanobiocomposite materials convenient to apply in aerospace, mechanical, construction, automotive, marine, medical, packaging, and furniture industries, through providing environmental sustainability. Nanoparticles (TiO2, carbon nanotube, rGO, ZnO, and SiO2) are easily compatible with other ingredients (matrix polymer and biofibers) and can thus form nanobiocomposites. Nanobiocomposites are exhibiting a higher market volume with the expansion of new technology and green approaches for utilizing biofibers. The performances of nanobiocomposites depend on the manufacturing processes, types of biofibers used, and the matrix polymer (resin). An overview of different natural fibers (vegetable/plants), nanomaterials, biocomposites, nanobiocomposites, and manufacturing methods are discussed in the context of potential application in this review.