Application of natural fiber‐polymer composites (NFPCs) in different industrial applications provides competitive edge due to their lightweight, higher specific mechanical properties than glass fibers, sustainability, and lower cost involved in production. There are certain challenges associated with natural fibers and their reinforcement in composites such as poor bonding between the fibers and matrix due to their contradictory nature of characteristics, moisture absorption, lower thermal properties, and poor interfacial adhesion between the natural fiber and polymer matrix. The challenges involved in NFPCs need to be overcome to produce materials with relatively equivalent properties to those of conventional composites and other metallic structures. Several researchers around the globe have conducted investigations with the primary attention being paid to the modification of natural fibers and matrix by employing surface treatments and other chemical treatment methods. In order to address the need for eco‐friendly and sustainable materials in different domains, a comprehensive review on natural fibers and their sources, available matrix materials, modification techniques, mechanical and thermal properties of NFPCs, is needed for better understanding of the behavior of NFPCs. This work provides the information and holistic view of natural fiber‐reinforced composites based on the results obtained from modification techniques, with the view of focusing the review in terms of different chemical and physical treatment techniques, modification of fibers and matrix, and enhanced mechanical and thermal properties in the composites.