Depletion of fossil fuel reserves and ever-increasing energy demands necessitates exploring green and renewable biofuels. Though biomass-based fuels have the potential to replace fossil fuels but the low quality of fuels along with high process economics limits direct application. Concept of integrated bio-refinery is the unparalleled solution to this problem which involves the production of hydrocarbon grade fuels along with valuable chemicals from the pyrolysis derived bio-oil. This paper reviews recent advances in upgradation techniques of bio-oil along with moisture removal techniques and recovery of valuable chemicals from bio-oil. It also reviews current advances in the utilization of co-product such as biochar to increase the overall economics of the process. It also elucidates the challenges encountered as well as scope for future work. The current review is peculiarly based on pyrolysis based bio-refinery with detailed literature on the techniques of conversion of pyrolysis derived bio-oil into valuable biofuels and industrial grade chemicals with a view to improve the overall economics of the process through biochar utilization, which is not covered in other reviews. As compared to other published studies, this work provides more comprehensive information on the topic, which will give better understanding to a new researcher as well as help to plan and develop new techniques on bio-refinery for attaining the aim of cleaner and sustainable future.