<p>The increasing global dependence on biofuels as an alternative to fossil fuels has spurred extensive research into optimizing their production processes. Nanotechnology has emerged as a game-changing tool for enhancing biofuel yield, purity, and efficiency, offering significant commercial potential. This review critically examines the applications of various nanomaterials—such as graphene, carbon nanotubes, metallic nanoparticles, nanocomposites, and nanoscale biochar—in enhancing the conversion of diverse feedstocks, including lignocellulosic biomass, microalgae, and organic waste, into biodiesel, bioethanol, biohydrogen, and biogas. The novel integration of metallic nanoparticles and carbon-based nanomaterials in enzymatic hydrolysis, transesterification, and fermentation has markedly improved biofuel yields and reduced production costs, creating opportunities for scalable and commercially viable biofuel production. Additionally, nanomaterials enhance biofuel quality by facilitating advanced purification techniques that optimize separation processes. Despite these promising advancements, environmental and toxicity concerns surrounding the use of nanoparticles remain significant challenges. This study identifies key research gaps, including scalability, lifecycle assessments, and establishing regulatory frameworks, which must be addressed for effective commercialization. Future research must optimize the synthesis of eco-friendly, cost-effective nanoparticles while minimizing environmental risks. The findings emphasize the need for an integrated, nanotechnology-driven approach to achieve sustainable, economically viable biofuel production on a commercial scale.</p>