Agave, commonly known as “maguey” is an important part of the Mexican tradition and economy, and is mainly used for the production of alcoholic beverages, such as tequila. Industrial exploitation generates by-products, including leaves, bagasse, and fibers, that can be re-valorized. Agave is composed of cellulose, hemicellulose, lignin, fructans, and pectin, as well as simple carbohydrates. Regarding functional properties, fructans content makes agave a potential source of prebiotics with the capability to lower blood glucose and enhance lipid homeostasis when it is incorporated as a prebiotic ingredient in cookies and granola bars. Agave also has phytochemicals, such as saponins and flavonoids, conferring anti-inflammatory, antioxidant, antimicrobial, and anticancer properties, among other benefits. Agave fibers are used for polymer-based composite reinforcement and elaboration, due to their thermo-mechanical properties. Agave bagasse is considered a promising biofuel feedstock, attributed to its high-water efficiency and biomass productivity, as well as its high carbohydrate content. The optimization of physical and chemical pretreatments, enzymatic saccharification and fermentation are key for biofuel production. Emerging technologies, such as ultrasound, can provide an alternative to current pretreatment processes. In conclusion, agaves are a rich source of by-products with a wide range of potential industrial applications, therefore novel processing methods are being explored for a sustainable re-valorization of these residues.