<p>The environmental concerns associated with increased usage of cars has led to an interest in developing lightweight and damage-tolerant structural materials. This review systematically examines a new class of self-healing hybrid natural fiber reinforced polymers (SH-HNFRPs) for sustainable automotive body applications. The novelty of this work lies in being the first systematic review to integrate both extrinsic (microencapsulation) and intrinsic (dynamic covalent) self-healing mechanisms with hybrid natural fiber reinforcement, evaluated specifically against automotive structural requirements. SH-HNFRPs were demonstrated to be producible through the combination of two self-healing techniques: dynamic covalent chemistry for internal healing and encapsulation technology for external crack repair. Bio-epoxies and bioplastics such as polylactic acids (PLAs) were evaluated as matrices for their strength and toughness. Hybrid natural fibers including jute, sisal, hemp, and flax were analyzed. The reviewed literature confirms that SH-HNFRP composite systems offer demonstrated advantages over conventional systems, including autonomous crack repair, competitive specific mechanical properties, and environmentally favorable production processes. Studies conducted over the past five years show that self-healing jute/epoxy bio-composite systems achieved impact-strength recoveries of up to 83.9%. Sisal/hemp/abaca composite systems embedded with melamine–formaldehyde microcapsules demonstrated improved tensile and flexural properties compared to non-self-healing equivalents. Hybrid intrinsic-extrinsic architectures using disulfide bond chemistry demonstrated multiple healing cycles without compromising mechanical properties. A technical evaluation covering fiber surface treatments, matrix compatibilities, manufacturing scalability, and life-cycle performance was conducted. Commercialization barriers, regulatory pathways, and future research priorities for automotive adoption of SH-HNFRP composites are also identified.</p>