This review provides a comprehensive analysis of the production, classification, and quality control of cachaça, a traditional Brazilian sugarcane spirit with significant cultural importance. It explores the fermentation and distillation of sugarcane juice, the ageing process in wooden containers, and the regulatory aspects of cachaça labelling. It emphasises the role of quality control in maintaining the spirit’s integrity, focusing on monitoring copper levels in distillation stills. Ethyl carbamate (EC), a potential carcinogen found in cachaça, is investigated, with the study illuminating factors influencing its formation and prevalence and the importance of its vigilant monitoring for ensuring safety and quality. It also underscores the control of multiple parameters in producing high-quality cachaça, including raw material selection, yeast strains, acidity, and contaminants. Further, the impact of ageing, wood cask type, and yeast strains on cachaça quality is examined, along with potential uses of vinasse, a cachaça by-product, in yeast cell biomass production and fertigation. A deeper understanding of the (bio)chemical and microbiological reactions involved in cachaça production is essential to facilitate quality control and standardisation of sensory descriptors, promoting global acceptance of cachaça. Continued research will address safety concerns, improve quality, and support the long-term sustainability and success of the cachaça industry.