In view of the worldwide economic and environmental issues associated with the extensive use of petro-chemicals, there has been increasing research interest during the past decade in the value of residual biomass. Because of its renewable nature and abundant availability, residual biomass has attracted considerable attention as an alternate feedstock and potential energy source. To expand the range of natural bio-resources, significant progress related to the lignocellulose biotechnology has been achieved, and researchers have been re-directing their interests to biomass-based fuels, ligninolytic enzymes, chemicals, and biocompatible materials, which can be obtained from a variety of lignocellulosic waste materials. This review article focuses on the potential applications of lignocellulosic materials in biotechnology, including the production of bio-fuels, enzymes, chemicals, the pulp and paper, animal feed, and composites.