Display omitted •Gasification prevents the generation of harmful gases such as NOx and SOx.•LCB gasification is a significant technology to reduce reliance on fossil fuels.•The low energy required makes the gasification process very cost-effective.•Utilizing LCB in BE framework with the help of gasification was investigated. The energy deficiency issues and intense environmental pollution have exacted the production of biofuels which are both renewable and sustainable and can be used to displace fossil fuels. The raw material for manufacturing second-generation biofuels is lignocellulosic biomass (LCB), which is widely available. LCB bioprocessing to produce high-value bio-based products has been the subject of attention. Biomass gasification is a powerful technology to achieve sustainable development goals, reduce reliance on fossil fuels, and reduce environmental concerns. This paper, will provide an overview of the LCB structures and the gasification process. Also, consistent with the concept of “circular bio-economy”, this study focuses on the role of LCB gasification in the environmental impacts, and how gasification can be effective in the pathway of circular bio-economy. The current challenges to gasification and biorefinery and future perspectives are also presented.