The aim of this paper is to study the effect of reinking and pretreatment of waste banknote paper on its usability in the bioethanol production process. To this end, the tensile strength of worn banknote paper was first studied at different pH values. The sample with the lowest tensile strength was considered for the next sections. In the deinking process, NaOH at different concentrations (1%, 2%, 3%, and 4%) and in combination with ultrasonic treatment was applied. After deinking the pulp, two acidic and alkaline chemical pretreatments with concentrations of 1%, 2%, 3%, and 4% were used independently and in combination with ultrasonic. Enzymatic hydrolysis, following fermentation with Scheffersomyces stipitis, and crystallinity measurements were used to confirm the efficiency of the pretreatments. RSM Design Expert software was used to determine the optimal values by considering the three variables—enzyme loading, ultrasonic loading, and contact time for waste paper deinked (WPD) and waste paper blank (WPB) pulps. The results indicated that repulping was the most efficient at pH = 2. In deinking, the highest brightness was obtained using 3% NaOH in combination with ultrasonic. Between the acid and alkaline pretreatment, the acid treatment was more appropriate according to the resulting sugar concentration and weight loss. XRD tests confirmed that the lowest crystallinity index was obtained in the sample pretreated with 4% sulfuric acid in combination with ultrasonic. The highest sugar concentration in the enzymatic hydrolysis step was 92 g/L for WPD and 81 g/L for WPB. For the fermentation at 96 h, the highest ethanol concentration and process efficiency achieved were 38 g/L and 80.9% for WPD and 31 g/L and 75.04% for WPB, respectively. Our research shows that the deinking process can widen the utilization potential of waste banknote paper in biorefinery processes.