The development of biorefineries is a crucial step in the circular economy framework. In biorefineries, research is intensified towards utilizing feedstocks, which do not need arable land or compete with food sources. In this scenario, emerged, submerged and free-floating aquatic plants are garnering significant attention as potential feedstocks owing to their generation in huge quantities, especially in eutrophic water bodies, similar composition to lignocellulosic biomass with lower lignin content and requirement for only mild pre-treatments. Therefore, exploring the feasibility of using these aquatic plants for the production of various biocommodities in a biorefinery approach can be of prime importance. In light of this, the current review illustrates the use of some of the major aquatic plants for the production of different biocommodities. The main focus of the study is to shed light on the various biorefinery schemes that could be implemented using these aquatic plants. It also outlines the challenges and prospects of aquatic plant-based biorefineries. The findings suggest that various biorefinery schemes can be implemented using these aquatic plants and a combination of chemical and biological processes could aid in lowering the cost and achieving better yields. Furthermore, it is also observed that research on large-scale management and valorization of these aquatic plants also needs to be intensified.