Abstract Continuous depletion of underground fossil fuel resource imposes a serious concern towards the advancement of our civilization and earth's total energy reserves. Thus, extensive research work has been directed towards the biofuel synthesis, which can be produced from renewable biomass‐based feedstock and can considerably substitute the fossil fuel‐based present energy infrastructure. First‐generation biofuels are made from sugar, starch, oilseed crops, and animal fats. Among them, bioethanol is the most widely used biofuel since 1970. The primary goal of sustainable development of second‐generation biofuel from biomass consists of the residual non‐food parts of crops (stems, leaves, and husks) that are left behind after extraction of food crop. In this context, 2,5‐dimethylfuran (DMF) emerges as an excellent second‐generation liquid biofuel with ideal fuel properties like high octane number, high boiling point (92–94 °C) and low water solubility (0.26%). Looking at the immense potential of DMF as a biofuel, several approaches are undertaken for producing DMF from renewable bioresources. In this review, we have highlighted major advancements made in the catalyst design and processes for the bulk‐scale synthesis of DMF from different biomass‐derived organics. Future scopes for the DMF‐based energy technologies are discussed considering their sustainability, environmental impact, and the economy of the processes.