In current scenario, the bioenergy is purely gesture towards the synthesis of first-generation alcohol from sugarcane, rice, sorghum, molasses and many other starch-based sources. In the last few decades, demand of ethanol is hugely increased especially in USA, Brazil, China and India. First generation of ethanol production is traditional and easiest method to generate the alcohols at large scale. The demand for alcohols all over the world increased the rural as well as suburban employment. As a consequence, socio-economic status of the related population has improved. On the other hand, there is also amplified use of land for the growth of sugarcane and other energy crops for production of ethanol, which creates a competition with food production for the billions of people. It’s also recognised that due to the rise in distilleries, environmental pollution also increased, especially contamination of groundwater and decreased the soil fertility. In the same time, nanobiotechnology showed its positive influence in bioenergy sector, at least in laboratory-scale experiments. In the coming future, it may be helpful for the synthesis of second-generation of biofuels such as bioethanol from lignocellulosic biomass (LCB), especially belonging to different types of straws and forest waste. Nanobiotechnology can play the major role in the deconstruction of LCB that may be through immobilisation of enzymes, etc.