Biogas requires specific processing in terms of upgradation to remove acid gas contents, making it a profitable fuel with higher energy content. This is conventionally attained through physical or chemical absorption due to the higher selectivity towards CO2 and H2S. The conventional processing technology impacts the process with higher energy content for solvent regeneration, solvent loss causing a threat to the environment with its toxicity, and damaging the equipment by corrosion. In this view, ionic liquids (ILs) emerged as potential candidates providing a favorable facet in terms of both processing and ecological aspects. Hence, herein the potential of IL and deep eutectic solvent (DES) in comparison to the conventional solvents and technologies used for biogas upgrading based on process system engineering perspective that showcases techno‐economic, energy‐economic, and environmental aspects and opportunities that may lead towards establishing sustainable and effective processing of biogas is shown and a comprehensive review on the opportunities, prospects, and challenges to make IL and DES as future solvent for biogas upgrading on the commercial scale is provided.