A rapid growth in the research and employment of natural-fiber composites (NFCs) has been observed in the last years. This is explained by their many advantages, such as the biodegradability, eco-friendliness, a relatively low cost, and good mechanical properties. Despite these advantages, they also possess some undesirable features, such as difficulties in processing, high fiber moisture absorption, low impact strength, low durability, poor fire resistance, and poor compatibility between fibers and matrix. Much effort has been applied to minimizing these issues in order to extend the capabilities and applications of this group of materials. In an attempt to provide a better insight into NFCs, an up-to-date review of their manufacturing routes, different applications, and mechanical performance is very required. This review aims to address the above-mentioned issues challenges encountered when dealing with such materials.