In a world where fossil fuels are running out, biofuels are one of the best green energy alternatives to fuels made from petroleum due to their environmentally beneficial qualities and low cost in comparison with non-renewable fossil fuels. Biofuels are produced from cheap and renewable sources and the energy stored in these biomasses can be assimilated to create sustainable electricity or heat, which can then be exploited to meet current and future societal needs in numerous situations. However, the production of biofuels on an industrial scale takes a lot of time because of the numerous constraints placed on currently available technology and the increased costs that go along with them. Moreover, the processes utilized to transform various feedstocks into the desired output also vary based on the materials and techniques employed. The supply of biofuel feedstocks is large, and with improved processing, we could significantly lower our reliance on fossil fuels. In this context, the use of nanoparticles (NPs) is a commendable solution to the present problems with biomass use, especially given their low cost. The unique qualities of nanomaterials, such as excellent catalytic properties, high surface area-to-volume ratio, remarkable selectivity, and reusability make them admirable tools for boosting biofuel generation. This review predominantly focuses on the contributions of nanotechnology and various immobilization methodologies in accelerating biofuel production from biomasses that might fill in the research gap, which was previously limited by the relatively lower efficiency of traditional techniques of biofuel generation.