A sustainable biorefinery for biofuel production is a facility designed to convert biomass into various types of biofuels while minimizing environmental impact and maximizing resource efficiency. The approach of sustainable biorefinery is based on utilizing the potential of renewable resources instead of fossil fuels as used by traditional petroleum refineries. The main objective is to develop closed-loop system that minimizes waste and environmental impact but maximizes the potential of renewable resources. For sustainable biorefinery, the key ingredients would be agricultural residues, forestry residues, energy crops, and organic waste. The ideal approach is the use of nonfood biomass to prevent competition with food production and also ensure sustainable land-use practices. Moreover, a more advanced strategy called integrated biorefinery is now focusing on utilizing the biomass to its maximum efficiency and converting it into value-added bio-based products (biocomposites, fibers, biopolymers) and biochemicals (organic acids, alcohols, enzymes, bioplastics) along with biofuels (ethanol, biodiesel, biogas, biojet fuel). The process of biorefinery is based on pretreatment which helps in initial processing to break down biomass into its fundamental components, followed by primary conversion and secondary conversion to form intermediate products and high-value products, respectively. Further, waste valorization, which is the process of converting by-products and wastes into products with added value, such as producing biogas from residues, is performed. More research is needed to standardize the processing steps, create efficient waste management, monitor the quality and sustainability, and evaluate economic viability.