Exploring alternative energy sources is vital amid increasing human fuel consumption. Globally, biogas, rich in methane, hydrogen sulfide, and carbon dioxide, addresses energy demands through biomass anaerobic digestion (AD). Efficient digestate management, employing techniques like solid‐liquid separation and composting, is crucial for environmental protection. The goal is to optimize nutrient‐rich byproduct utilization while minimizing negative impacts. This review analyzes diverse substrates, emphasizing challenges and benefits. Key considerations include nutrient ratios, moisture content, co‐digestion, organic loading rate, and retention time. The study explores temperature's impact on microbial growth, biogas impurities, and upgradation techniques, including biological methods. Fermentation, microbial electrochemical techniques, and biochar use for enhanced AD are introduced. Discussing digestate's multifaceted aspects, the review highlights its nutrient value and diverse applications in aquaculture, animal feed, fermentation, bioremediation, and fine chemical production.