Fusel oil (FO) is one of the by-products of the sugar-alcohol industry, which has application as an additional source of higher alcohols for production of esters with flavoring, fuels and lubricants properties, as well as additives in petroleum-based fuels and in pesticide formulations. Thus, this review is focused on the characteristics of FO and its applications as an acyl acceptor in transesterification and esterification reactions for esters production, its addition to fossil fuels, and the herbicidal and fungicidal potential of the compounds presented in its chemical composition. The operating conditions of the process, results obtained, and patented applications in the food, cosmetic, transportation and agricultural sectors are also reported and discussed. Furthermore, main trends, challenges and recommendations are proposed in order to overcome the disadvantages of applying FO in the reported sectors, as well as alternatives for the development of new lines of research are suggested.