In tonnage terms commercial production of engineering composites is dominated by glass reinforced systems, this is particularly the case in the automotive industry.Natural fibres have long been regarded as a viable lightweight replacement for glass, however the various shortcomings of natural/cellulosic fibres have so far, inhibited exploitation, where resistance to fast fracture during impact is a major failing.Composite Mesostructure describe mid-scale structures in composites, such as fibre alignment patterns, bundling effects, and fibre end synchronisation. The Mesostructure can dramatically affect final properties in some random short fibre systems where flow is involved, such as sheet moulding compounds (SMC), and can be the determining factor in, e.g. the success of one fibre system over another. This study seeks to manipulate the fibre macrostructure in moulding compounds reinforced with cellulosederived fibres, where it is shown that by arranging mechanically inferior fibres in bundles, composite toughness can be drastically improved, and the reasons behind the toughening mechanism at work, is discussed. It is concluded that by controlling fibre morphology and mesostructure, some of the main barriers to wide exploration of natural fibres in engineering composites can be removed.