The jamming effect is critical in processing short fiber-reinforced thermoplastics (FRTs). Fiber jamming can induce discontinuous shear thickening (DST) in simple shear and result in fiber-matrix separation in more complex flows such as injection molding and compression molding of FRTs. The confinement effect commonly induces local jams and strongly enhances fiber jamming. However, the transient evolution of local fiber jams under confinement and its correlation with the tumbling of fibers are still elusive. In this study, we adopted rheo-PIV (particle image velocity) techniques to study this effect for glass fiber-reinforced thermoplastics (FRTs). The translational and tumbling motion of fiber were determined during rheological measurements, and the distribution of fiber orientation was determined by X-ray CT. Three shear banding regions appeared after the viscosity overshoot under high shear stress in suspensions with high fiber content, which was associated with the three regions of fiber orientation across the gap due to confinement. Shear banding was ascribed to the different tumbling speeds across the gap because of the different initial orientations and different wall confinements near and far from the wall. The local shear thickening and jamming behavior became most significant under intermediate confinement, and were affected by shear strain, shear stress, and fiber contents. 3D state diagrams were constructed to show the confinement effect on the evolution of shear banding and jamming.