The automotive industry stands at a critical juncture, compelled by the imperative of sustainability to seek innovative materials for eco-friendly light-weighting. Natural fiber reinforced polymer composites (NFRPCs) have gained popularity due to their environmentally friendly nature and excellent engineering capabilities. This review paper comprehensively examines the landscape of NFRPCs in the context of automotive applications. Beginning with an overview of the ecological urgency and regulatory framework driving sustainable automotive materials, the review navigates through key advancements in NFRPC technology. The paper delineates the diverse array of natural fibers employed as reinforcements, elucidating their intrinsic properties, sources, and processing considerations. Concurrently, an in-depth analysis of various polymer matrices showcases their compatibility with different fiber types, emphasizing the critical interplay between fiber and matrix for optimal composite performance. A pivotal facet of this review manuscript lies in the rigorous evaluation of NFRPC performance across an array of metrics, including mechanical, thermal, and environmental considerations. Studies examining the interfacial interactions between natural fibers and polymers, as well as enhancements through additives and treatments, are critically assessed. Environmental and economic considerations are paramount in the quest for sustainable automotive materials. While economic evaluations delve into the viability and cost-effectiveness of widespread adoption, life cycle assessments and environmental impact analyses are evaluated to estimate the ecological footprint of NFRPCs. The paper also surveys current trends and prospects, offering insights into forthcoming innovations and directions for research. Therefore, this review article consolidates a comprehensive body of knowledge on NFRPCs for eco-friendly automotive light-weighting. By synthesizing findings from diverse studies, it provides a holistic perspective on the potential, challenges, and future trajectory of NFRPCs in the automotive sector.