Abstract Multifunctional materials, the most advanced and hi-tech engineering materials that can withstand mechanical loads and are featured with high thermal stability, fatigue resistance along with enhance chemical, and environmental resistance. Effective efforts have been made from past decades to design a substitute for existing metallic materials, in terms of weight, better performance, and cost effectiveness, by fabricating promising multifunctional hybrid polymer composites and hybrid nanocomposites. The multifunctional composites features characteristics novel and emerging applications ranging from catalytic, electrical, capacitors, batteries, hybrid ground vehicles, biomedical engineering, automotive, airplanes, space shuttles, remote sensing, environmental, energy conversion, and energy storage sectors. This chapter is intended to present a comprehensive review to explore the multifunctional materials and the properties of multifunctional hybrid composites. This chapter also offers a compilation regarding recent developments of hybrid composites and nanocomposites technology with major emphasis on its multifunctional applications, including some details of smart hybrid composites for potential future research.