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Nowadays, sustainable and eco-friendly products are gaining more attention in various engineering industries owing to their considerable strength-to-weight ratio, abundant availability, and recyclability. The properties of biofibers depend on the cultivation method, environmental conditions, and extraction method. Biofibers are hauled out by dew retting, water retting, and mechanical decortication methods. The properties of natural fiber–reinforced composites can be enhanced by proper physical and chemical treatments. The aim of this study is to propose a complete evaluation of the different extraction methods applied on natural fibers. Various physical and chemical treatment methods were used to ascertain the properties of optimized natural fiber-reinforced composites for various industrial applications. The key findings derived from various existing data and the chemical treatment results of the biofiber-reinforced composite are specifically highlighted with critical assessment. The properties and use of natural fiber-reinforced composites in the various fields of applications have made them candidates of choice over synthetic petroleum–based fibers.