Natural fiber-reinforced polymer composites (NFCs) are gaining prominence as eco-efficient alternatives to conventional synthetic composites, driven by their biodegradability, low density, renewability, and competitive mechanical properties. Among recent developments, hybrid natural fiber composites comprising two or more natural or synthetic fibers embedded within a polymer matrix have demonstrated enhanced performance by leveraging the complementary properties of different fibers. These composites address key limitations of single-fiber systems, such as poor moisture resistance, dimensional instability, and low interfacial adhesion with hydrophobic matrices. The mechanical behavior of hybrid composites is largely determined by factors such as fiber type, length, orientation, surface morphology, and the quality of the fiber–matrix interface. To improve interfacial bonding, various surface modification techniques—such as alkali treatment, plasma activation, and chemical grafting—are employed to increase surface roughness, remove hemicellulose and waxes, and introduce functional groups that enhance interfacial shear strength (IFSS). These treatments significantly improve stress transfer, leading to composites with superior tensile, flexural, and impact properties, along with improved thermal and environmental durability. Hybrid natural fiber composites have found applications in diverse sectors including automotive (interior panels, bumpers), construction (insulative boards, paneling), biomedical (scaffolds, drug delivery systems), and emerging microfluidic devices, where lightweight, strength-to-weight efficiency and environmental safety are critical. With continued innovation in hybridization strategies, interfacial engineering, and processing techniques, Natural fiber hybrid composites present a robust path forward for replacing synthetic fiber composites in structural and functional applications aligned with sustainable development goals.