Polyethylene (PE), a highly prevalent non‐biodegradable polymer in the field of plastics, presents a waste management issue. To alleviate this issue, bio‐PE, derived from renewable resources like corn and sugarcane, offers an environmentally friendly alternative. This review discusses various production methods of bio‐PE, including fermentation, gasification, and catalytic conversion of biomass. Interestingly, the bio‐PE production volumes and market is expanding due to the growing environmental concerns and regulatory pressures. Additionally, the production of PE and bio‐PE biocomposites using agricultural waste as filler materials, highlights the growing demand for sustainable alternatives to conventional plastics. According to previous studies, addition of about 50% defibrillated corn and abaca fibers into bio‐PE matrix and a compatibilizer, resulted in the highest Young's modulus of 4.61 and 5.81 GPa, respectively. These biocomposites have potential applications in automotive, building construction, and furniture industries. Moreover, the advancement made in abiotic and biotic degradation of PE and PE biocomposites is elucidated to address their environmental impacts. Finally, the paper concludes with insights into the opportunities, challenges, and future perspectives in the sustainable production and utilization of PE and bio‐PE biocomposites. Summed up, production of PE and bio‐PE biocomposites can contribute to a cleaner and sustainable future.This article is protected by copyright. All rights reserved