Fossil fuels are primary sources for energy production. Increased dependence on fossil fuels has resulted in increased environmental issues demanding alternative sources. Bioenergy is becoming a popular alternative energy source due to its positive environmental impact and the availability of renewable sources. However, the availability of renewable energy sources in the energy sector currently contributes to about 14%. Biofuels are preferred due to its sustainability, eco‐friendly approach, and low‐cost raw materials, making it an efficient technique for energy production. This article provides the fundamental and applied concepts for on conversion processes of biomass to biofuels, such as combustion, pyrolysis, fermentation, gasification, and anaerobic digestion along with their role in the green economy. Different physical characteristics of biomass resources are important and contribute to determining their potential for producing biofuels. Herein, LCA, its techno‐economic importance, and the role of biomass in green economy are explained. Varying compositions and properties of different types of biomass resources, including lignocellulosic feedstocks, agriculture and forest residue, municipal solid waste, food waste, and animal manure as potential biomass resources, have been discussed. The article explains the strengths and weaknesses of different thermochemical conversion techniques and their current input toward scalar applications and commercialization.