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In today's engineering industries, there is a growing focus on sustainable and eco-friendly products due to their recyclability, abundant availability and property variability. One key aspect of this sustainability effort is the development of eco-friendly materials, particularly bio composites derived from agricultural waste residues. The physical, mechanical and thermal properties as well as suitability of these fibers depend greatly on the methods used for extraction, processing, chemical modification and physical treatments. Understanding these processes comprehensively is essential for obtaining desired natural fibers/fillers from agricultural waste for creating effective bio composites to meet specific application demands. This study aims to provide a comprehensive assessment of the various extraction and modification techniques employed for natural fibers. It offers an in-depth review of diverse extraction processes, ranging from the initial harvesting to the decortication stage. It has been revealed that the choice of extraction methodologies depends on climate, water resources, local traditions, and the desired fiber quality. Additionally, the paper explores chemical and physical treatments, highlighting how each method influences the structure and properties of natural fibers. Overall, this review offers practical insights into the steps taken to transform agro-waste biomass into desired natural fiber and in turn biocomposite material, while enhancing product quality and performance. [ABSTRACT FROM AUTHOR]