Hydrothermal liquefaction (HTL) represents a beacon of scientific innovation, which unlocks nature’s alchemical wonders while reshaping the waste-to-energy platform. This transformative technology offers sustainable solutions for converting a variety of waste materials to valuable energy products and chemicals—thus addressing environmental concerns, inefficiencies, and high costs associated with conventional waste-management practices. By operating under high temperature and pressure conditions, HTL efficiently reduces waste volume, mitigates harmful pollutant release, and extracts valuable energy from organic waste materials. This comprehensive review delves into the intricacies of the HTL process and explores its applications. Key process parameters, diverse feedstocks, various reactor designs, and recent advancements in HTL technology are thoroughly discussed. Diverse applications of HTL products are examined, and their economic viability toward integration in the market is assessed. Knowledge gaps and opportunities for further exploration are accordingly identified, with a focus on optimizing and scaling up the HTL process for commercial applications. In conclusion, HTL holds great promise as a sustainable technology for waste management, chemical synthesis, and energy production, thus making a significant contribution to a more sustainable future. Its potential to foster a circular economy and its versatility in producing valuable products underscore its transformative role in shaping a more sustainable world.