Sustainability and the need for biodegradable composites are the two new buzzwords finding prominence in recent times. In this regard, there has been a significant increase in interest regarding natural fiber composites (NFCs) due to their potential to address environmental issues and contribution toward the development of sustainable materials. The aim of this extensive review is to thoroughly investigate the current research landscape, advancements, and applications of NFCs. The study covers a range of topics, including the various types of natural fibers commonly used, their processing techniques, reinforcement strategies, mechanical properties, morphological characteristics, biodegradability, and sustainability. It also explores their potential uses across different industries. Furthermore, this article examines the challenges and opportunities associated with NFCs, as well as their environmental impacts and economic viability. By conducting a detailed analysis of existing literature, this review aims to shed light on the advancements achieved so far and the future potential of NFCs as eco-friendly alternatives to conventional materials. Ultimately, it offers insights into how these materials can enhance sustainability in material engineering.