Fiber‐reinforced composites have emerged as versatile materials with applications spanning diverse industries, driven by their exceptional mechanical properties and lightweight nature. This review provides a comprehensive overview of natural fiber‐reinforced composites, focusing on their enhanced mechanical and functional properties achieved through modern processing techniques. The study delves into various manufacturing methods, such as thermoforming, additive manufacturing, compression molding, electro‐spinning, pultrusion and autoclave molding, which have significantly contributed to the advancement of these composites. The review further investigates the multifaceted properties of these composites, which highlights the versatility and applicability of these materials and provides a holistic understanding of their potential applications. Additionally, the work addresses current research gaps and identifies prospects, shedding light on the evolving landscape of natural fiber‐reinforced composites. The synthesis of processing techniques, material properties and potential applications offers valuable insights for researchers, practitioners and industries aiming to harness the full potential of these sustainable and high‐performance materials. © 2024 Society of Chemical Industry.