This article consists of the two parts. In the first part the nature of jute fiber, productivity, advantages, disadvantages, its composition etc. have been described. The jute fiber is also compared with the glass fiber. Inspite of some advantages, this natural fiber possess some drawbacks and thus needs chemical modification. For modification of fiber-matrix interaction i.e. to reduce jute polymer interactions and to facilitate wetting, the use of compatibilisers is also mentioned. In the second part different types jute composites have been described. The role of jute composite as wood substitute is explained. The different methods of jute composite manufacture with its potentials & prospects are also described in a nutshell.