MFC can have dual functions; they can generate electricity from industrial and domestic effluents while purifying wastewater. Most MFC designs comprise a membrane which physically separates the cathode and anode compartments while keeping them electrically connected, playing a significant role in its efficiency. Popular commercial membranes such as Nafion, Hyflon and Zifron have excellent ionic conductivity, but have several drawbacks, mainly their prohibitive cost and non‐biodegradability, preventing the large‐scale application of MFC. Fabrication of composite materials that can function better at a much lower cost while also being environment‐friendly has been the endeavor of few researchers over the past years. The current review aims to apprise readers of the latest trends of the past decade in fabricating composite membranes (CM) for MFC. For emphasis on environmental‐friendly CM, the review begins with biopolymers, moving on to the carbon‐polymer, polymer‐polymer, and metal‐polymer CM. Lastly, critical analysis towards technology‐oriented propositions and realistic future directives in terms of strengths, weakness, opportunities, challenges (SWOC analysis) of the application of CM in MFC have been discussed for their possible large‐scale use. The focus of this review is the development of hybrid materials as membranes for fuel cells, while underscoring the need for environment‐friendly composites and processes.