Lignocellulose is one of the most sustainable and abundant resources on Earth. The degradation and microbial modification of lignocellulose into value-added products have been of interest among researchers as well as in replacing conventional petrochemical products. The yield of biofuel from lignocellulosic biomass involves two steps which include pretreatment and microbial conversion. Effective pretreatment strategies are required for the breakdown of lignocellulosic biomass due to its recalcitrant structure. This particular review delivers an intricate overview of the sources of lignocellulose followed by its structure and composition. This review highlights the pretreatment strategies followed by microbial conversion of lignin biomass. The key mechanism and the metabolic pathways associated with lignin degradation have been critically assessed. The conversion approach has enhanced the potential treatment by the microbial consortium for the production of biochemicals, biofuels and bioplastics. The key challenges and future direction in terms of industrialization of the bioproducts from lignocellulosic biomasses are also summarised.