Since the Kyoto protocol, the EU renewable energy policy has been the driving force in research and development of the production and use of biofuels. Therefore, the utilization of biofuels and the scientific research to widen the scope of their commercialization are being increasingly promoted. In this context, we present here an overview of the technological developments that have occurred in the production of different biofuels and their resources with a focus on the lignocellulosic biomass and biofuels derived from it. In the recent years, many technologies have evolved enabling the production of different liquid biofuels from lignocellulosic biomass. Bioethanol production using microbial fermentation, and production of bio-oil using fast pyrolysis process of biomass are some of the most widely researched and promising technologies. The first production plants based on these techniques are already operational. Bioethanol production from lignocellulosic biomass promises a good fuel yield under laboratory scale. However, there are several challenges that need to be tackled before the production process can be commercialized. We provide here an overview of the various possibilities that can be exploited for biofuel production and make recommendations for increasing the production efficiency with a view to improving the overall yield and lowering the production costs.