Poly(hydroxybutyrate) (PHB) has become an attractive biomaterial in research and development for past few years. It is natural bio‐based aliphatic polyester produced by many types of bacteria. Due to its biodegradable, biocompatible, and eco‐friendly nature, PHB can be used in line with bioactive species. However, high production cost, thermal instability, and poor mechanical properties limit its desirable applications. So there is need to incorporate PHB with other materials or biopolymers for the development of some novel PHB based biocomposites for value addition. Many attempts have been employed to incorporate PHB with other biomaterials (or biopolymers) to develop sustainable biocomposites. In this review, some recent developments in the synthesis of PHB based biocomposites and their biomedical, packaging and tissue engineering applications have been focused. The development of biodegradable PHB based biocomposites with improved mechanical properties could be used to overcome its native limitations hence to open new possibilities for industrial applications.