Nowadays, Fiber-reinforced Polymer Composites (FRPCs) are extensively utilized due to their remarkable properties such as high stiffness, excellent strength to weight ratio, resistance to wear, corrosion etc. Earlier, the FRPCs are prepared through synthetic fibers in order to attain high strength in conjunction with high elastic modulus. However, with the increasing economic and environmental factors regarding the accumulation of plastic waste, the development of natural and hybrid (combination of any two) fibers were started. The mechanical properties of FRPCs are largely determined by the way loads are transferred between the matrix and fibers, or by the strength of the bond between the fiber-matrix interfaces. Additionally, these factors play a significant role in determining the overall performance of FRPCs. Therefore, this review discusses the recent advancements in enhancing the interaction between fiber and matrix by means of chemical treatment and the inclusion of nanoparticles. The resulting mechanical performance of the end composites and their intended applications are also presented. Few targeted application areas of FRPCs such as aerospace, automobile, mechanical and biomedical implants were discussed in detail.