<p>This paper reviews the latest advances in graphene-reinforced carbon fiber composites (GRCFCs), focusing on their mechanical, thermal, electrical and interfacial properties. Various graphene preparation methods are discussed, including chemical vapour deposition, mechanical and chemical exfoliation, reduction of graphene oxide (GO), with critical analysis of how each method influences graphene quality and subsequent composite performance. GRCFC fabrication techniques including chemical grafting, electrophoretic deposition and wet spinning, are then discussed for their impact on composite properties. Furthermore, the role of matrix selection, dispersion strategies, and associated challenges are explored. This review highlights the enhancement in tensile strength, Young’s modulus, and overall multifunctional performance arising from improved interfacial bonding and microstructural design, particularly with the incorporation of polyacrylonitrile (PAN)-based systems. A comparative analysis of structure-property relationships is presented to elucidate the synergistic effects of graphene within carbon fiber matrices. In addition, key applications of GRCFCs in aerospace, automotive and energy sectors are outlined, emphasizing their role in mass-efficient structural components, fuel efficiency, and energy storage systems. The potential of flash Joule heating as an emerging recycling strategy is also discussed, demonstrating its capability to convert waste composites into turbostratic flash graphene with catalytic applications. At the end, this paper provides an in-depth analysis of the current challenges, including dispersion uniformity, interfacial compatibility and manufacturing complexity along with future perspectives for the scalable development and industrial adoption of GRCFCs.</p> Graphical abstract <p></p>