The need of composite material in industries is increasing day by day due to its competent characteristics with the traditional materials. The plastic composite materials made of polymers are used as structural elements in different fields. The present day polymeric composites are made by mainly focussing the natural fibers as reinforcements because of their usability, properties and cost. While preparing these new composites, utmost care must be taken for synthesizing the natural fibers and polymers before fabrication. Also, during the fabrication of a new composite the process and parameter selection plays a vital role. Once the composites are fabricated, it needs several machining operations as secondary processing. This paper gives a detailed review of different challenges during the synthesis, fabrication, characterization and machining of natural fiber reinforced plastic composites.