Research has recently transitioned from the study of fossil-based materials to bio-sourced ones, following the quest to achieve sustainability. However, fire presents a unique hazard to bio-composite materials, which limits their applicability in various sectors. This necessitates an in-depth assessment of the fire behaviour of biobased composites used for specific applications. Improving the fire properties of bio-composites with flame retardants tends to reduce mechanical strength. Therefore, this review focused on biobased composite materials for packaging, structural, automotive, and aeronautical applications that are both mechanically strong and fire safe. It was noticed that the interfacial bonding between the matrix and the reinforcement should be optimized. In addition, optimum amounts of flame retardants are required for better fire performance. This article covers flame retardants for biobased composites, the optimum amount required, and the extent of improvement to the thermal stability and flammability of the materials. This research will help material scientists and the like in their selection of biomass feedstock, flame retardants, and general materials for different types of applications.