Jute fiber is an important agricultural product. It is one of the most common natural fibers in Third World countries such as India, China, Bangladesh, etc. The jute industry has special importance in the economy of India and continues to be a major traditional earner of foreign exchange. However, it is facing tough competition from the synthetic fibers. Jute fibers find use in sophisticated fields like decorative and furnishing materials such as lamp shades, wall covers, curtains, upholsteries, etc. Today it is the least expensive fiber of mass consumption, at only a fraction of the cost of glass fibers; in terms of volume, jute is now the second most important fiber in the world, next to cotton. In the traditional applications in carpets, ropes, sacks, etc., jute fibers have been partially replaced by synthetic fibers which have some advantages compared to jute. In order to ensure a reasonable return to farmers, nontraditional outlets have to be explored for the fiber. One such avenue is in the area of fiber-reinforced composites.