Biomass residues are the important energy resources in the compact form because of easy handling, good fuel characteristics, and easy transportation. Agriculture generates a lot of biomass waste from different crops which may also become a threat to the environment if not used appropriately. Biomass such as paddy straw are burnt in open fields causing huge air pollution. For making agriculture more eco-friendly, proper use of biomass must be ensured. These biomasses may act as sustainable energy resources in future in the form of pellets or briquettes. This study includes review of materials, methods for manufacturing of pellets and briquettes from biomass along with the binders used and characterization from the published work during last two decades. Different types of binders including livestock wastes as well as synthetic binders are used to increase the strength, capacity, control of combustion of fuel, and calorific value of fuel. Compact forms of biomass in the form of pellets and briquettes have been reported as better fuels for controlled combustion and better applications. A review of techno-economic study for biomass residue pelletization has been made for establishment of potential of agricultural residues as sustainable energy sources and also to develop better insight for a controlled combustion fuel.