This article discusses the challenges and opportunities associated with the recycling and utilization of sugarcane bagasse, a lignocellulosic residue from sugarcane processing. Sugarcane bagasse is a promising resource for various applications, including energy generation, biofuel production, and the creation of materials like biochar, nanocellulose, and adsorbents. Despite its potential, several challenges remain, such as the high energy costs of processing, the need for improved quality control for long-term storage and transportation, and the technical difficulties in scaling up production processes. The article highlights recent research developments, including pyrolysis for biofuel production, pelletization for energy efficiency, and the use of sugarcane bagasse in adsorption processes for contaminant removal. It also emphasizes the importance of addressing these challenges to fully realize the economic and environmental benefits of sugarcane bagasse utilization. The study concludes that further research and technological advancements are necessary to optimize the use of sugarcane bagasse in various industrial processes, contributing to a more sustainable and circular economy.This article discusses the challenges and opportunities associated with the recycling and utilization of sugarcane bagasse, a lignocellulosic residue from sugarcane processing. Sugarcane bagasse is a promising resource for various applications, including energy generation, biofuel production, and the creation of materials like biochar, nanocellulose, and adsorbents. Despite its potential, several challenges remain, such as the high energy costs of processing, the need for improved quality control for long-term storage and transportation, and the technical difficulties in scaling up production processes. The article highlights recent research developments, including pyrolysis for biofuel production, pelletization for energy efficiency, and the use of sugarcane bagasse in adsorption processes for contaminant removal. It also emphasizes the importance of addressing these challenges to fully realize the economic and environmental benefits of sugarcane bagasse utilization. The study concludes that further research and technological advancements are necessary to optimize the use of sugarcane bagasse in various industrial processes, contributing to a more sustainable and circular economy.