This study aims to valorize abundant lignocellulosic residues from furfural biorefineries into hierarchically porous carbon anodes for sustainable lithium-ion batteries (LIBs). Simultaneously, it addresses the growing demand for high-performance anode materials by leveraging renewable waste feedstocks. Sugarcane bagasse waste residues obtained after furfural extraction were used as the precursor. The furfural-derived bagasse residue (FDBR) underwent pyrolysis at 700 °C to produce a carbon-rich char, which was further activated using KOH and steam at 900 °C for 15–60 minutes to enhance porosity development. Comprehensive physicochemical characterizations, including proximate analysis, N2 adsorption-desorption, SEM-EDX, FTIR, and TGA/DTG, and Raman spectroscopy were performed to evaluate the properties of the synthesized activated carbons. The results demonstrated the successful generation of high surface area (405.8 m2/g) activated carbons with a hierarchical pore structure comprising micropores and mesopores. SEM and EDX analyses revealed a uniform, porous morphology enriched with 10.41 % at oxygen-containing functional groups. FTIR spectra confirmed the presence of hydroxyls, carbonyls, and carboxylic acid groups, beneficial for pseudocapacitive charge storage. The Raman analysis revealed a highly disordered and amorphous carbon structure with a significant concentration of defects, as evidenced by a high-intensity ratio (ID/IG ≈ 1.2–1.4) of the disordered carbon band to the graphitic band. The activated carbons exhibited a high initial discharge capacity of 1055 mAh/g in lithium half-cells, significantly exceeding the theoretical limit of commercial graphite anodes (372 mAh/g). This superior capacity was attributed to the high surface area, hierarchical porosity, and pseudocapacitive contributions from the oxygen functionalities. However, rapid capacity fading from 1055 to ∼250 mAh/g was observed over 100 cycles at a C/2 rate. The capacity retention stabilized at ∼88 % after 47 cycles, indicating irreversible capacity losses. These limitations were ascribed to the disordered amorphous structure, instability of the solid-electrolyte interphase, lithium trapping by oxygen groups, and structural changes during cycling. Optimizing activation conditions, incorporating conductive additives/coatings, exploring alternative binders, and surface functionalization are proposed to improve long-term cycling stability. Overall, this study demonstrates the feasibility of upcycling furfural biorefinery waste into sustainable LIB anodes while highlighting challenges and potential solutions for enhancing their electrochemical performance.