The continuously increasing demands for various fossil fuels to achieve the day-to-day needs of the human population are growing and causing adverse effects on the environment and leading to the depletion of their natural resources. To overcome such drastic problems and minimize the production of greenhouse gases, lignocellulose biomass, which is an abundant and bio-renewable source present on earth with excellent properties and composition, has been used for decades to develop biofuels that can easily take over the place of conventional fuels. Lignocellulose biomass comprises polymeric sugars, i.e., cellulose and hemicellulose, and aromatic polymer, lignin, which are responsible for producing various bio-based products. However, utilizing lignocellulosic wastes for such purposes is needed but their recalcitrant structure makes it difficult to achieve their full usage. For this, several pretreatment approaches are developed to loosen the complexity between sugars and lignin. In some way, few of the conventional pretreatment methods are expensive, non-eco-friendly, and produce undesired by-products, causing a lower yield and reusability of enzymes used in the reaction. Utilizing novel pretreatment strategies that are cost-effective, help in increasing the yield of products, and are environment-friendly is required. Thus, incorporating nanoparticles and nanomaterials in the development of pretreatment and other strategies for the production of bio-based products is currently thriving. This review is designed in such a way that the readers can easily get brief knowledge about the production of important biofuels developed within second-generation biorefineries using lignocellulosic biomass. It also summarizes the importance of nanotechnology in different steps of biofuel development.