This review focuses on the fermentation potential of GRAS (generally recognized as safe) bacteria that belong to Paenibacillus species on the production of 2,3‐butanediol (2,3‐BDO). P. polymyxa, P. peoriae, and P. brasilensis were reported as highly efficient microbial producers of 2,3‐BDO and acetoin. The factors contributing to the fermentative production of 2,3‐BDO are addressed with particular emphasis on crucial fermentation parameters, precursors that increase fermentation efficiency, and the significance of metabolic pathways. Several carbon sources from renewable resources can be consumed by Paenibacillus strains, which favors the development of alternative biorefinery concepts including the production of 2,3‐BDO within a circular bio‐economy approach. Downstream separation and purification processes used for the recovery of bio‐based 2,3‐BDO are also discussed. The production of 2,3‐BDO isomers with high stereoisomeric purity can lead to new applications and markets. Paenibacillus strains could be a viable alternative to biosafety level 2 strains that were widely investigated for the production of 2,3‐BDO.