Nanoparticles are widely used in biocomposite materials due to their ability to improve the mechanical properties of composites. This comprehensive review analyzes the use of nanoparticles to enhance the experimental low and high-velocity impact resistance of natural fiber composites. Various nanoparticles like carbon nanofibers, carbon nanotubes, boron nitride, zinc oxide, and titanium dioxide were investigated as reinforcements at different loading levels. The addition of nano-ZrO ₂ alone or with graphene oxide yielded the highest impact resistance and interlaminar shear strength of basalt fiber/epoxy composites. Cloisite 20A clay improved the mechanical properties of an epoxy matrix. Carbon/epoxy laminates showed improved maximum impact force, energy absorption, and displacement with 2wt% carbon nanofibers loading. Nanoparticles were found to enhance moisture and temperature resistance by strengthening the fiber–matrix interface. The literature demonstrated that small amounts of well-dispersed nanoparticles can meaningfully improve natural fiber composites’ impact resistance, strength, stiffness, toughness, and energy absorption through mechanisms like crack arresting and bridging. Hybrid carbon-basalt fibers and calcium carbonate nanoparticles also enhanced composite performance. Balancing the nanoparticle loading is crucial to prevent agglomeration effects. Future studies on their toxicity and environmental impacts would be needed for widespread commercial applications of Biocomposites.