The increasing demand of essential oils (EOs) as nutraceuticals, food, pharmaceutical, and cosmetic ingredients in the current scenario has opened up new avenues for their large-scale production. India's biodiversity and scientific development promise to make it leading country in aroma business in the coming years. Plant resources contain the natural and aromatic EOs in small quantities which are difficult to extract. These EOs can be produced by different techniques including conventional, nonconventional, and biochemical processing strategies. The combination of conventional and non-conventional techniques has proved to be potential extraction methods. They ensure EO production with shorter extraction time, higher efficiency, and enhanced product quality. There has been a constant urge to develop greener synthesis and extraction procedures for EOs due to the adverse effects caused to the environment by the physical and chemical methods. Researchers are exploring bioengineering techniques to enhance the quality and quantity of EOs using various microorganisms and enzymes. Metabolic engineering and biotransformation can tackle the uncertainty of raw material supply for EOs like the climatic changes, natural disasters, and plant diseases. With high efficiency, specificity, and purity of products, these methods are highly beneficial for future applications. This review presents a detailed description of the current status of EO production, their potential extraction techniques, and life cycle assessment (LCA) of essential oil production. The recent developments in the direction of bioengineering for scalable synthesis of EOs are also highlighted in this review.