This article deals with biomass‐based technologies for polygeneration and district heating (
DH
). The relevant technologies for the generation of heat, power, and biofuels are presented in Section 1 taking into account thermochemical, chemical, and biological pathways. In particular, the opportunity of integrating them for polygeneration—also according to the biorefinery concept—is analyzed here. Biomass combined heat and power (
CHP
) systems for
DH
application have been compared considering size, efficiency, flexibility of operation, and field experience. In Section 2, heat distribution systems have been described taking advantage of the previous analysis on generation technologies and pointing out the existing relation between distribution, generation efficiencies, and
DH
network temperature. The current trend toward low temperature
DH
systems has been then extensively analyzed. The effects of the possible variation in the heat demand—both in the short term (i.e., daily to seasonal utilization profiles) and in the medium term (e.g., building refurbishment)—on the
DH
system operation and efficiency, are presented here. The biomass
CHP
systems are also discussed in the vision to extend the smart grid concept to thermal networks. As a whole, pilot or real‐plant data and validated theoretical models are used to support the analysis.