Escalation of the global population has accelerated the demand for sustainable energy sources such as bioethanol. Traditionally, bioethanol has been produced using fossil fuels, which are non-renewable, non-sustainable, and not eco-friendly. Thus, there is a need to develop new technologies and low-cost raw materials in order to ensure that bioethanol is economically comparable to traditional fossil fuels. Solid-state fermentation (SSF) has been in the limelight within the scientific community because of its efficiency, cost-effectiveness, and promising technology to produce various products such as postbiotics and bioethanol. SSF involves the cultivation of microorganisms on solid substrate with the absence of free-flowing water, which eliminates the need for sugar extraction and reduces wastewater production. This systematic review provides an overview of the applications of SSF in bioethanol production while presenting recent studies and advancements of this technology for producing sustainable and cost-effective bioethanol.