Interfacial shear strength (IFSS) of environmentally friendly natural fiber reinforced polymer composites plays a very important role in controlling their overall mechanical performance. The IFSS of various Ramie and Kenaf fiber/epoxy composites was evaluated using the combination of micromechanical test and nondestructive acoustic emission (AE) to find the optimal conditions for desirable final performance. Dynamic contact angle was measured for Ramie and Kenaf fibers and correlated the wettability properties with interfacial adhesion. Mechanical properties of Ramie and Kenaf fibers were investigated using single-fiber tensile test and analyzed statistically by both unimodal and bimodal Weibull distributions. The effect of clamping on the real elongation for both Ramie and Kenaf fibers was evaluated as well. Two different microfailure modes, axial dedonding and fibril fracture, coming from fiber bundles and single fiber composites (SFC) were observed under tension and compression. They were evaluated optically and also determined by AE and their FFT analysis nondestructively.