The demand for novel and renewable sources of energy has increased as a result of rapid population growth, limited sources of bioenergy, and environmental pollution, caused by excessive use of fossil fuels. The need to meet future energy demands have motivated researchers to search for alternative and sustainable sources of energy. The bioconversion of lignocellulosic waste (agricultural and food waste) into biofuels shows competitive promises. Lignocellulosic waste is easily accessible and has a large enzyme system that can be immobilised onto nano-matrices. Consequently, resulting in higher biofuel production and process efficiency. However, the excessive production cost of the current procedures, which involve physical, chemical, and enzymatic reactions, is limited. The use of nanomaterials has recently been shown to concentrate lignocellulosic waste, therefore, reviewing the quest for efficient production of sustainable and cost-effective development of bioenergy from lignocellulosic wastes. This review paper explores the advanced strategies of using nanobiotechnology to combine enzyme-conjugated nanosystems for the cost-effective production of sustainable bioenergy solutions. This research will help to develop an inexpensive, eco-friendly technology for biofuels production and also help overcome the environmental burden of lignocellulosic waste worldwide.