Biodegradable agro-industrial leftover has sparked widespread attention as an inexpensive, long-term material for fermentation operations. Different industries are funding in the production of biofuels and eco-friendly chemicals after recognizing the importance of lignocellulose feedstock. Lignocellulose biorefinery (abbr. LB) is emerging as a sustainable replacement to customary petrochemical processes, targeted to address the growing environmental issues and resource limitations associated with fossil fuels. This is an innovative, sustainable, and cost-effective approach of processing abundant and renewable lignocellulosic wastes. Innovative use of this plentiful, renewable biomass is critical for a green economy and sustainability. The primary objective of sustainable biorefinery should be the conversion of lignocellulosic biomass in several valuable products. LB uses engineering processes and applied science for lignocellulosic biomass processing for the production of bio-based products. Despite its enormous potential for fuel and industrial applications, lignocellulose’s structural complexity makes it difficult to process. The process commences with the preprocessing of lignocellulosic feedstocks, which is critical for disintegration of the recalcitrant framework of the biomass. Integrating pretreatment technologies and improving techno-economic efficiency can boost yield of products, recycling of chemicals, and by-product transformation which promotes sustainability of the environment and economic growth. Recently, genetic modifications to biomass composition and structure emerged as an effective technique for modifying biomass for biorefinery. While significant technological advancements have been made, ongoing investigations and innovations have become critical to overcome the challenges related to biomass recalcitrance, process integration, and economic viability. The present study explores the economic factors which impact the industrialization of lignocellulose biorefineries and emphasize the cost-effective relationships and market potential. It highlights noteworthy obstacles such as biomass preprocessing and product separation which limit operational efficiency. The primary objective of the current report is to facilitate the successful commercialization of these biorefineries, thereby advancing a circular economy and lessening reliance on fossil fuels.