Engineering polymers reinforced with renewable fibres (RF) are an attractive class of materials, due to their excellent mechanical performance and low environmental impact. However, the successful preparation of such composites has proven to be challenging due to the low thermal stability of RF. The aim of the present study was to investigate how different RF behaves under increased processing temperatures and correlate the thermal properties of the fibres to the mechanical properties of composites. For this purpose, hemp, flax and Lyocell fibres were compounded into polypropylene (PP) using a co-rotating twin screw extruder and test specimens were injection moulded at temperatures ranging from 180 °C to 260 °C, with 20 K steps. The decomposition behaviour of fibres was characterised using non-isothermal and isothermal simultaneous thermogravimetric analysis/differential scanning calorimetry (TGA/DSC). The prepared composites were investigated using optical microscopy (OM), colorimetry, tensile test, Charpy impact test, dynamic mechanical analysis (DMA) and melt flow rate (MFR). Composites exhibited a decrease in mechanical performance at processing temperatures above 200 °C, with a steep decrease observed at 240 °C. Lyocell fibres exhibited the best reinforcement effect, especially at elevated processing temperatures, followed by flax and hemp fibres. It was found that the retention of the fibre reinforcement effect at elevated temperatures can be well predicted using isothermal TGA measurements.