Bioethanol is a fuel derived from the plant-based products. It is synthesised via fermentation of sugars and starch found in crop plants. Large-scale production of bioethanol can be obtained from algae and lignocellulosic biomass. Synthesis from biological materials and less gaseous emissions establish bioethanol as an eco-friendly alternate to the conventional fuels. Availability of resources in limited amount, long and complex thermochemical or enzymatic pretreatment process are some of the limitations that restrict large-scale synthesis of bioethanol. Biotechnological techniques are been applied to synthesize enzymes involved in treatment of biomass, modify lignocellulosic materials that easily release sugars for fermentation and development of crop plants with desirable characteristics (such as less lignin content). Research studies are underway to develop a more efficient and affordable technology for bulk synthesis of bioethanol from lignocellulose feedstocks.