The research mainly focused on a systematic review of open-access research articles published between 2019 and 2024 on the Springer link database ( https://link.springer.com/ ). Of particular interests were the studies on the hydrolysis of lignocellulosic biomass (LCB) to produce valuable products and the genetic engineering of microorganisms to improve their potential. The study adhered to the Preferred Reporting Items for Systematic Reviews and Meta-Analyses guidelines. The engineering of microbial strains and enzymes for LCB hydrolysis has shown potential for enhancing productivity and creating value from underutilized biomass resources. Through genetic engineering, directed evolution, and rational design, it has been demonstrated that enzyme engineering can enhance the natural properties of enzymes for industrial applications. It has been demonstrated that recombinant DNA technologies can overcome these challenges by improving protein synthesis, stability of exogenous expression, control over gene expression, folding of proteins, and metabolic pathways. Prokaryotic chassis strains have been reportedly subjected to genome streamlining to improve exogenous expression stability, protein production, and fitness. Ethical studies were also reviewed. The study has the potential to significantly improve environmental remediation techniques, the pharmaceutical industry, and various biotechnological industries’ productivity and efficacy.