It is nowadays recognized that the building sector causes the greatest environmental impact in terms of both waste production and carbon emissions. Within the context of ecologically sustainable development (ESD), the construction sector is looking for more eco-friendly materials, such as natural fibres. Natural fibers are worldwide recognized as ideal replacement for traditional construction materials, providing excellent thermal and acoustic insulation for building but also for adoption as reinforcement fibers in cement mortars, composite materials, solid boards/panels, raw biomasses, multi-layers, filled loosen/foaming types, particles, slurry types, coils, bricks, etc. The aim of this work is to provide a clear overview on the natural fibers currently employed in the green production of building components, with the main focus on wool fibers deriving from the livestock sector, where wool waste disposal is a crucial problem. This article is a review conducted using the Systematic Literature Review (SLR) approach, a globally recognized method that is not inherently innovative. The innovation of this article lies in the addressed topic, which is relatively new and has only recently gained significant attention, resulting in a limited number of highly relevant articles in the literature.A systematic literature review of the use of wool fibers for green building components is conducted herein to highlight the characteristics that make such material a usable resource in the construction sector and the limits of its use. Given the findings from the reviewed papers, the authors could document that most of the reviewed articles aimed at analyzing the mechanical, thermal, and acoustic properties of building components containing wool fibres. The review highlights that the strength of the wool fiber relies on its thermal properties which can be exploited for building thermal insulation. The wool fiber is also featured to provide good resistance to flexural loads; conversely, all the studies highlighted a negative effect of wool fibers on the compressive behavior of the investigated building components. The analysis of the acoustic properties showed that given the strong capacity of the wool fiber to absorb sound, wool is a great alternative to the conventional materials derived from non-renewable resources.Nevertheless, despite the eligibility of such fiber to be employed soon in the building sector, the analysis about the economic viability of the manufacturing process suggests that the high costs for the raw material, labor, electricity, and above all the high volume of water have to be drastically reduced by prompting the development of sheep wool fiber waterless processing. The achieved results could represent a first step in planning the sustainable re-use of wool waste as natural, renewable, and biodegradable fiber in the construction sector, providing the possibility of creating a new supply chain and solving the problem of its disposal.