In a biorefinery process, 5-Hydroxymethylfurfural (HMF) is a promising biomass-derived chemical with diverse industrial applications. The biotransformation of HMF to different high-valued furanic derivatives, such as 2,5-furandicarboxylic acid, 2,5-diformylfuran, 5-hydroxymethyl-2-furancarboxylic acid, and 5-formyl-2-furancarboxylic acid, has led to the transition from fossil-derived products to bio-based chemicals through sustainable routes. Although, chemocatalytic conversion of HMF has been extensively studied in the recent years, the higher selectivity, environment friendliness, and mild reaction conditions of HMF bioconversion has established these processes as a promising alternative to harsh chemical conditions. To understand the present status and challenges of HMF bioconversion, this review retrospects and describes the recent advancements in the biotransformation of HMF and systematically assesses the recent findings and developments in the HMF biotransformation through various reaction schemes. Further, this review illustrates, in comprehensive detail, the merits and challenges of various biological processes and it proposes a few research trends for economical and facile HMF bioconversion for commercialization.