The tensile, flexural, and impact strength distribution and the cost-effectiveness of kenaf bast fiber bundle (KBFB)-reinforced unsaturated polyester composites were studied. Probability models including normal, two-parameter Weibull, gamma, lognormal, exponential, Burr, Pareto, and inverse Gaussian models were fitted against measured composite strengths. Taking the 5th percentile values as the composite's strength design values, the two-parameter Weibull model provided the most conservative composite strength design values. A cost-effectiveness analysis showed these composites were more cost-effective than glass fiber-reinforced sheet molding compounds (SMCs) for carrying tensile and flexural loads when their fiber loadings reached 51.2 and 56.3 percent (wt/wt), respectively. The KBFB-reinforced unsaturated polyester composites were less cost-effective than glass fiber-reinforced SMCs for carrying impact loads. This work suggests that natural fiber-reinforced composites have the potential to be viable replacement materials in applications where impact resistance is not critical. Forest Products Society 2010.