Alternative energy, especially liquid fuel, i.e., methanol and dimethyl ether (DME), is considered a clean and low-carbon energy source. Among several applications, methanol is used as transportation fuel, an additive with conventional petroleum products, a solvent, a feedstock for specialty chemicals, etc. Methanol can be converted to DME by catalytic dehydration into fuel for heavy turbines, rockets, etc. Therefore, methanol and DME are considered the most promising energy carriers and the main competitors to hydrogen and other petroleum-based products. Because of the increasing demand for cleaner and sustainable energy fuel, many technologies using different feedstocks (including coal, natural gas, CO 2 , and biomass-derived syngas) have been developed over the years for the production of methanol and DME. Methanol production on an industrial scale to date is mostly based on coal and natural gases. However, reducing the dependence upon non-renewable sources and increasing large-scale methanol production using biomass-derived syngas are the most important topics nowadays. In the present study, the recent advances in the development of production processes of methanol and DME using syngas are thoroughly reviewed, considering reaction chemistry, kinetic aspects, and heat and mass transfer rates. Further, the state-of-the-art experimental and computational fluid dynamics characterization techniques involved in design and scale-up and process intensification in slurry reactor technology for liquid-phase methanol synthesis are reviewed. Finally, an attempt is made to give a detailed review based on recent literature to find an advanced, cost-effective, and efficient process for biomass-derived syngas conversion into methanol and DME with future research and development perspectives.