Natural fiber composites (NFC’s) have considerable promise for a wide range of technological applications due to their exceptional features, which include notable weight reduction, high strength, and affordability. The aforementioned materials are also biodegradable and sustainable, which makes them appealing for use in sustainable engineering methods. This research focuses on evaluating the mechanical features of jute fiber and Al₂O₃ particle fortified polymer composites, exploring their potential for advanced engineering uses. The Taguchi technique is used with a L9 orthogonal array, integrating three-level, three-parameter approach, to systematically examine potential combinations of process variables in the manufacturing of these polymer composites. The primary goal is to optimize the mechanical attributes of the composites, which include tensile modulus, tensile stress, and weight percentage increase. Detailed investigations are conducted to interpret the effects of these process factors on the performance metrics. The research employs ANOVA and regression evaluation to assess the pertinence of process factors on the individual output variables. Furthermore, interaction assessment is carried out to discover the implications of the impact of interactions among the process factors on the intended performance measures. To examine the multi-performance index, Grey analysis is used to establish the Grey Relational Coefficient (GRC) values, which provide a comprehensive performance assessment. The resulting composite materials demonstrate considerable potential for application in interior automotive components, such as dashboards and luggage compartments, due to their enhanced mechanical properties and environmental benefits.