<p>Microbial valorization of lignocellulosic waste has established its potential to build an eco-friendly bio-based economy. Microorganisms can transform complex biomass constituents into high-value materials, including biofuels, biochemicals, and bioplastics, thereby reducing dependence on fossil resources. Lignocellulose biomass is a plentiful renewable resource that can be changed into a wide range of products, such as biofuels, bioenergy, chemicals, nanocomposites, and advanced products. Over the past decades, widespread investigations have focused on evolving efficient approaches for the pretreatment and microbial biotransformation of lignocellulosic waste. Different pretreatment methods have been explored to enhance biomass accessibility and improve product yields. This review summarizes recent progress in microbial valorization techniques, advancements in pretreatment technologies, and various types of improved products that can be obtained from lignocellulose biomass. In addition, significant developments in genetic and metabolic engineering of microbial strains will be discussed, with emphasis on improving process efficiency and broadening product portfolios. Aligned with the principles of the sustainable economy, microbial valorization of lignocellulosic waste not only minimizes environmental impact but also promotes economic growth by enabling sustainable bio-based solutions, opening up the door toward a zero-waste future.</p> Graphical abstract