The utilization of sustainable natural fibers as green filler/reinforcement material for producing polymeric composites is substantially improved due to increase in the perception of ecological safety and usage of biodegradable and renewable materials toward a green environment. These natural fibers are obtained from various sources and are reinforced in the polymer matrices to produce polymer matrix composites. However, the overall properties of these composites are low when compared to that of the synthetic fiber‐based composites due to poor interfacial bonding between the hydrophilic natural fiber and hydrophobic polymers. This deficiency can be addressed by incorporating the nano‐clay in the natural fiber composites. The nano‐clay added composites offer improved properties because of enrichment in the interfacial bonding between the matrix and reinforcement materials. Furthermore, the nano‐clay has the ability to increase both flexibility and rigidity of the natural fiber in a single step. This review article presents the information about different varieties and properties of natural fibers, polymers, nano‐clays, and nano‐clay added natural fiber composites with specific concern to their mechanical properties. This article also focuses on possible future paths for this emerging area of research.