Lignocellulosic feedstocks are year-round, available bio-residues that are the right candidates for counteracting the energy crises and global warming facing the world today. However, lignin leads to a slow hydrolysis rate and is a major bottleneck for biogas production via anaerobic digestion. Anaerobic co-digestion (AcoD) is an economical method available, which overcomes the limitation of a single feedstock’s properties in an anaerobic digestion process. This paper critically reviews the impacts of co-digestion on lignocellulosic biomass degradation, process stability, various working parameters, and microbial activities that improve methane yields. A combination of compatible substrates is chosen to improve the biomethane yield and conversion rate of organic matter. AcoD is a promising method in the delignification of lignocellulosic biomass as an acid pretreatment. Ultimate practices to control the impact of co-digestion on system performances include co-feed selection, in terms of both carbon-to-nitrogen (C/N) and mixing ratios, and other operating conditions. A detailed analysis is performed using data reported in the recent past to assess the sensitivity of influencing parameters on the resultant biogas yield. For the investigators motivated by the basic principles of AcoD technology, this review paper generates baseline data for further research work around co-digestion.