With rapid growth of global population, meeting the increasing demand for food has become a significant challenge. This challenge is further compounded by limited arable land and the necessity to address the nutritional needs of both humans and animals. However, the utilization of straw biomass, which is readily available as an agricultural by‐product, presents a sustainable solution to this problem. Microbial fermentation has emerged as a highly effective method for converting non‐food biomass into protein, particularly known as single‐cell protein (SCP). Compared to traditional protein sources, SCP production through microbial fermentation is rapid and efficient, and requires minimal land resources. This review provides a comprehensive review of the research advancements in SCP from agricultural biomass, including pretreatment methods, microbial strains, and fermentation processes involved in the bioconversion of straw biomass. Due to the complexity of straw‐based biomass (SBB), it is essential to customize industrial strains and optimize the fermentation process to achieve the highest protein yield and productivity. Additionally, improving the compatibility between tailored processes and cost‐effective industrial strains can lead to the production of protein substitutes that are not only highly nutritious but also economically viable. Hence, the application of SCP derived from SBB presents a dual solution by reducing the need for managing agricultural residues and providing a sustainable source of protein. However, the production of SCP from SBB also has some limitations, such as protein‐synthesis efficiency, production cost, and difficulty to scale‐up the production process. In the future, there is great potential for significant advancements in the targeted conversion of SBB into protein by customizing high‐performance microbial strains. Several sensor and machine learning technologies will predict and monitor real‐time dynamic changes in the fermentation process of SBB, offering an opportunity to improve the production of sustainable SCP in an environmentally friendly and precise manner.