Newer materials and composites that have both economic and environmental benefits are being considered for a wide variety of applications. Natural agro-based (lignocellulosic) have excellent specific mechanical properties and are potentially outstanding reinforcing fillers in thermoplastic composites. The specific tensile and flexural moduli, for example, of a 50% by volume of kenaf-PP composite compares favorably with a 40% by weight of glass fiber-PP injection molded composite. Results indicate that kenaf fibers are a viable alternative to inorganic/mineral based reinforcing fibers as long as the right processing conditions and aids are used, and for applications where the higher water absorption of the agro-based fiber composite is not critical. Recent research indicates that the lignin and possibly the hemicelluloses in agro-based fibers can be chemically modified to reduce the matrix flow temperature of the fiber allowing them to be thermally molded at temperatures below their decomposition. These plasticized matrix agro-fibers can then be grafted with modified thermoplastics to make agro-fiber/thermoplastic alloys.