The potential of cashew apple bagasse in advancing a circular bioeconomy is being recognized increasingly. Traditionally viewed as a mere byproduct, this agroindustrial residue is acknowledged for its value in producing biofuels and bioproducts through innovative processes. This review highlights the growing research on cashew apple bagasse, emphasizing its nutritional potential and versatility as a biomass platform for generating products. Advances in pretreatment and fermentation strategies have enhanced bioprocess efficiency and aligned these processes with sustainability goals by utilizing residual materials and reducing environmental impacts. Cashew apple bagasse has also demonstrated considerable promise for enzymatic applications, including enzyme immobilization and biopolymer production, such as polylactic acid. These applications offer eco‐friendly alternatives to conventional petroleum‐based products. Emerging trends in bioenergy research underscore the importance of overcoming technical challenges related to biomass pretreatment, carbon capture, and sustainable production technologies. Innovations in digital financing, artificial intelligence, and hydrogen production are pivotal for the commercial viability of biorefineries. Overall, the promising findings from studies on cashew apple bagasse highlight its crucial role in renewable energy and bioproducts, reinforcing its potential to contribute significantly to a sustainable and circular economy.