Growing interest in lignocellulosic bioethanol stems from the European Union's renewable energy directive, targeting a global bioethanol output of 130 billion L to achieve a minimum threshold of 42.5%. Despite industrialization challenges, recent advancements, especially in crucial stages like pretreatment, hydrolysis, and fermentation, are transforming the landscape. This review delves into the progress of bioethanol production, addressing technological, environmental, and economic hurdles. Innovations such as deep eutectic solvent pretreatment and mechanocatalysis, offering advantages like 30% and 100% solid loading, respectively, surpass traditional techniques and enzymatic hydrolysis in yielding better results. Improved pretreatment methods, enzyme exploration, saccharification techniques, genetic engineering, and integrated biorefineries contribute to overall economic viability. Ongoing research involves techno-economic analysis for cost-effective strategies, aiming to enhance the competitiveness of lignocellulosic bioethanol production. Scrutinizing the feasibility of these innovative approaches not only highlights their potential to overcome existing shortcomings but also envisions a more attractive future for industrial bioethanol production. Embracing these advancements could pave the way for a vibrant and sustainable bioethanol industry.