Non‐woven Lyocell mats were made from the fibers by carding and needling process at Swerea IVF, Mölndal, Sweden. The carding was done first in order to align the clumps of fibers. And then needle punching was done to obtain compact and entangled fiber mat. The composites were made by compression molding technique at temperature between 160‐170°C and pressure of 40 bar with non‐woven Lyocell, jute and viscose fiber reinforcements. The hybrid bio‐based composites were produced in this study to improve the mechanical properties of the composites. Bio‐based thermoset resin known as acrylated epoxidized soybean oil (AESO) was used as matrix in the composites. Laser cutting technique was adopted to cut specimens from laminates according to standard. The dimensional stability of the composites was determined by soaking the composite specimens in water for 10 days. Tensile and flexural properties of the composites were determined before and after water uptake. Hybridizing the jute fiber with glass and Lyocell fibers reduced the water uptake. Mechanical properties of the non‐woven fiber reinforced composites were studied by tensile, flexural, impact tests. Viscoelastic properties were studied using dynamic mechanical thermal analysis (DMTA). Tensile, flexural and impact properties of natural fiber composites were improved by hybridizing with Lyocell fiber.