This comprehensive review examines the role of sustainable aviation fuels (SAFs) in promoting a more environmentally responsible aviation industry. This study explores various types of biofuels, including hydroprocessed esters and fatty acids (HEFAs), Fischer–Tropsch (FT) fuels, alcohol-to-jet (ATJ) fuels, and oil derived from algae. Technological advancements in production and processing have enabled SAF to offer significant reductions in greenhouse gas emissions and other pollutants, contributing to a cleaner environment and better air quality. The review addresses the environmental, economic, and technical benefits of SAF, as well as the challenges associated with their adoption. Lifecycle analyses are used to assess the net environmental benefits of SAF, with a focus on feedstock sustainability, energy efficiency, and potential impacts on biodiversity and land use. Challenges such as economic viability, scalability, and regulatory compliance are discussed, with emphasis on the need for supportive policies and international collaboration to ensure the long-term sustainability of SAF. This study also explores current applications of SAF in commercial airlines and military settings, highlighting successful case studies and regional differences driven by policy frameworks and government incentives. By promoting technological innovation and addressing regulatory and economic barriers, SAF has the potential to play a crucial role in the aviation industry’s transition toward sustainability.