Nanotechnology has an increasingly large impact on a wide range of biotechnological, pharmacological and pure technological applications. Its current use in bioenergy production from biomass is very limited. This paper examines the potential interrelationships between nanotechnology and bioenergy production through a comprehensive literature review and analysis of data from biomass characterisation studies. The aim of this review is to indicate how nanotechnology can be applied in biomass-tobioenergy conversion. This study shows currently nanotechnology has been applied in the production of only two types of biomass, i.e. sludge and algae. Hence, interaction of nanomaterials with active sludge and algal cells were examined. Our extensive literature review indicates that anaerobic digestion process in sludge can potentially be enhanced by using magnetite nanoparticles, which gives higher methane yields. On the other hand, nanosilver reduces growth and causes adverse effects on the morphology of green algae. This process for bioenergy generation has already been successfully applied to sludge and algae biomass. Our study confirms that the process can also be used in the production of bioenergy from the other biomasses, such as agricultural wastes and industrial residues. Outcomes of this work will be an important tool for implementing nanotechnology in bioenergy research.