Lignocellulosic biomass (LCB) sourced from agriculture, forests, energy crops, and water bodies is a pivotal resource for sustainable bioenergy generation and base chemicals that can be exploited for a circular bioeconomy. Annually, worldwide LCB production is reported to be 181.5 billion tons; however, less than 5% of this amount is used to generate value-added products. Over the years, expansion in LCB valorization through biorefineries and biofuel production has been observed worldwide. The LCB global economics remains largely dynamic, and in 2023–2025, the market share is anticipated to be worth USD 4.27 billion. The worldwide marketplace for lignocellulosic biomass is anticipated to grow from its 2024 valuation of USD 4.27 billion to USD 9.06 billion by 2034. The market for LCB will continue to expand at a compound annual growth rate (CAGR) of 7.8%. Further, the expansion and feasibility of LCB utilization largely depend upon the techniques that facilitate the efficient utilization of its constituents, i.e., cellulose (40–50%), hemicellulose (20–40%), and lignin (10–25%). Biorefining, the processing of LCB into a range of marketable products, is a rapidly evolving processing technology that leads to the generation of biofuel and a variety of base chemicals. The chemicals sourced from LCB processing are used to produce fuels, solvents, plasticizers, and a variety of value-added products. The present review explores the fast-emerging realm of LCB bioprocessing and the implementation of eco-friendly biorefinery technologies, with reference to a circular bioeconomy approach.