<p>The escalating global energy demand, driven by rapid population growth and the&#xa0;Industrial Revolution, underscores the imperative shift toward cost-effective, reliable, and sustainable renewable energy resources. The exhaustion of fossil fuels and the net carbon emissions generated by their combustion have triggered scientists to search for alternative energy resources. Biofuels produced from various biomass and wastewater are suitable candidates for alternative energy resources as they are renewable and produce no CO₂ emissions. However, biofuel manufacturing must tackle several&#xa0;complications to compete with traditional fuels. Significant challenges in biofuel manufacturing include low yield, high production costs, and selecting suitable processing and substrates. In the present era, hybrid nanotechnology has been investigated for its synergistic effect compared to individual nanoparticles, resulting in&#xa0;high reactivity, high adsorption capabilities, and superior catalytic abilities in biofuel generation. This review article discusses the&#xa0;potential of wastewater for generating biofuels and utilizing nanotechnology in wastewater treatment. This review article discusses the role and utilization of various hybrid nanomaterials in biofuel generation from wastewater and green biomass. The application of nanomaterials in anaerobic digestion to produce biofuel was also discussed. Finally, life cycle assessment, scalability, environmental challenges, and future perspectives of hybrid nanotechnology for biofuel generation were also highlighted.</p> Graphical Abstract <p></p>