This chapter explores the valorization of sawdust, a lignocellulosic waste from the wood processing and furniture industries, into value-added chemicals and biofuels via thermochemical and biochemical conversion pathways. Pyrolysis converts sawdust into bio-oils and biochar, while anaerobic digestion yields biogas for energy applications. Acid hydrolysis liberates fermentable sugars for bioethanol production. Chemical activation using phosphoric acid transforms sawdust into activated carbon valuable for adsorption processes. Submerged fermentation mediated by microbes like Streptomyces lazureus produces glucose powder. Deacetylation enables acetic acid extraction, with applications spanning textiles to pharmaceuticals. The chapter highlights the challenges of overcoming the recalcitrance of lignocellulosic components, developing efficient pretreatment methods, selectively degrading lignin, and establishing economic viability through cost-effective production and market competitiveness. However, utilizing sawdust as a sustainable feedstock avoids competition with food crops, reduces environmental impacts through waste valorization, and promotes a circular bioeconomy. Sawdust-derived products offer solutions for carbon sequestration, soil amendment, and remediation. Harnessing sawdust’s potential through research, strategic collaborations, supportive policies, and investments can catalyze the transition toward a circular bioeconomy, fostering resource efficiency, energy security, and environmental sustainability globally. The valorization of this abundant waste into high-value chemicals and biofuels harmonizes economic growth with environmental stewardship.