The growing industrial demand for sustainable materials has led to a paradigm shift in the focus from synthetic polymers towards natural fibres. This paper deals with the challenges and opportunities associated with the use of natural fibre-reinforced polymer composites in various industrial applications. Natural fibres being biodegradable, light in weight, cost-effective and environment friendly are good candidate materials for modern industrial applications. Use of natural fibres in various industries with a focus on automotive and furniture industry has been discussed. The commonly used natural fibres in polymer composites including jute, hemp, sisal, kenaf, bamboo, cotton, flax, abaca, coir etc. have been dealt with in this paper. The literature revealed that tensile strength and other mechanical properties of these fibres are comparable to synthetic fibres like glass or carbon fibres. However, the temperature stability of polymers limits their extensive use and remains an issue to be addressed.