As petroleum prices continue to increase, it is likely that biofuels will play an ever‐increasing role in our energy future. The processing of biomass‐derived feedstocks (including cellulosic, starch‐ and sugar‐derived biomass, and vegetable fats) by catalytic cracking and hydrotreating is a promising alternative for the future to produce biofuels, and the existing infrastructure of petroleum refineries is well‐suited for the production of biofuels, allowing us to rapidly transition to a more sustainable economy without large capital investments for new reaction equipment. This Review discusses the chemistry, catalysts, and challenges involved in the production of biofuels.