Palm oil mill effluent (POME) is generated from the sterilization, condensation and hydrocycloning of palm oil in mills. If the effluent is discharged into the aquatic and terrestrial ecosystem without treatment, it could lead to high biological oxygen demand (BOD), chemical oxygen demand (COD) and acidic pH of the receiving waters. Biogas consisting mostly of methane, carbon dioxide, and to a lesser hydrogen has been produced through anaerobic treatment of this toxic effluent. The process of biogas production involves microbial synthesis involving hydrolysis, acidogenesis, acetogenesis and methanogenesis. Biogas is formed during anaerobic degradation of POME by indigenous microbial communities. This review updates the current state of art of biogas production through anaerobic digestion of POME using different configurations of reactors such as fluidized bed reactor, anaerobic filtration, up-flow anaerobic sludge blanket (UASB) reactor, anaerobic contact digestion, up-flow anaerobic sludge fixed-film (UASFF) reactor, modified anaerobic baffled bioreactor (MABB), anaerobic baffled bioreactor (ABR), continuous stirred tank reactor (CSTR), expanded granular sludge bed (EGSB) reactor, Ultrasonicated membrane anaerobic system (UMAS), Ultrasonic-assisted Membrane Anaerobic System (UAMAS), membrane anaerobic system (MAS)and upflow anaerobic sludge blanket reactor (UASBR). The factors that influences biogas yield during treatment include pH, temperature (environmental factors), organic loading rate (OLR), hydraulic retention time (HRT), mixing rate, pressure, equilibrium, nutrient and microbial activities (Internal factors). Based on this study, UAMAS is the best configuration for methane production from POME during anaerobic treatment. Biogas from POME could contribute to energy sources of oil palm producing nations, while preventing the attendant environmental impacts associated with its disposal.