The escalation of ecological awareness and sustainability has motivated many researchers to foster bio-composite studies and advancement in employing natural fibers and resin. During the last few decades, composites have emerged with various environmental impacts such as degradation, incineration and toxicity. The credence is that bio-composite materials will downsize the need for environmentally and economically synthetic polymers. To enhance the degradability to the maximum extent, natural resin and natural fiber must be acquired from natural resources. A sequence of treatments must be followed throughout the resin synthesis process to obtain a usable and effective form of natural resin. Natural fibers are becoming more and more dominant over synthetic fibres because of their superior strength, stiffness, durability and lack of toxicity. In comparison to synthetic fibres, biocomposites have the potential to diminish material expenses while improving mechanical properties. Many applications of bio-composites have created new opportunities for research and business ventures. Bio-composites are non-abrasive, degradable, and used for various purposes like packaging, medicine, agriculture and automotive industry. The undesirable factors like degradation, incineration, and recycling problem of non-biodegradable composite have induced the research and evolution of bio-composite. This decisive review would manifest a summary concerning the framework of natural resins, natural fibers, and bio-composites, the factors affecting the characteristics of bio-composites and the future prospects for this field.