In June, Defence Secretary John Healey announced plans to move the UK to "war-fighting readiness," including £1.5bn to support the construction of new munitions factories, which will be built by private contractors.
But after an 11-month inquiry, the defence committee warned the UK and its European Nato allies remained too reliant on the US and is not spending enough on its own defences.
Committee chair Tanmanjeet Singh Dhesi said: "Putin's brutal invasion of Ukraine, unrelenting disinformation campaigns, and repeated incursions into European airspace mean that we cannot afford to bury our heads in the sand."
He said the committee had "repeatedly heard concerns about the UK's ability to defend itself from attack".
The specific recommendations of the committee's report included a call for the government to accelerate the speed of industrial change, and make "readiness" a key objective.
Europe's heavy reliance on the US in critical areas such as "intel, satellites, transportation of troops and air-to-air refuelling" was also subject to critique in the report.
It noted that the UK had "next to nothing" when it came to integrated air and missile defences, and pointed to recent drones encroaching on airspace across Europe as a way new technologies can threaten civilian populations in addition to military targets.
The report was also particularly critical of what it calls the "glacial pace" of promised improvements to civil defence and resilience, saying the UK may be failing to meet its Nato Article 3 obligations to "maintain and develop individual and collective capacity to resist armed attack".
Dhesi says the government also needed to deliver on its promise to better communicate with the public about "the level of threat we face and what to expect in the event of conflict".
"Wars aren't won just by generals, but by the whole of the population getting behind the Armed Forces and playing our part," he added.