<p>The production of sugar and ethanol, which rely on the exploitation of sugarcane, contributes a large part to the overall socio-economic development of local communities. In India and many other developing countries, the sugar and ethanol industries often face scrutiny due to their overall negative impact on the environment. This includes excessive water usage, water, soil, air, and/or noise pollution, loss of biodiversity, and threats to natural habitats. This review outlines the processes involved in the production of sugar and ethanol, and the environmental impacts of the diverse types of waste generated as part of these processes. It further discusses the measures that can be adopted to foster more sustainable and eco-friendly practices within these industries. These include Better Management Practices (BMPs) such as Cleaner Production Technologies, Zero Liquid Discharge (ZLD), Waste water Treatment Technologies, Reuse and Recycling of Treated Effluent, Bagasse-Based Cogeneration and Bioenergy, Solid Waste Management and By-product Utilization, Air Pollution Control, and Noise pollution control strategies. In addition, the reviews also provide insights on how the adoption of green and circular economy principles aids in the promotion of resource efficiency and also in the minimization of waste generation. Furthermore, various challenges and limitations faced by the sugar and ethanol industries in implementing these sustainable measures, including financial, technological, and policy-related barriers, are also discussed. Finally, the review presents conclusion and future perspectives, emphasizing the need for integrated approaches, multi-stakeholder collaboration, and policy support to transition toward a more sustainable and resilient sugar and ethanol sector.</p>