Ethanol is considered the most potential next generation automotive fuel because it is carbon-neutral and could be produced from renewable resources like lignocellulosic biomass. There are some technological barriers such as pretreatment, saccharification of cellulose and hemicellulose matrix, and simultaneous fermentation of hexose and pentose sugars which needs to be addressed for efficient conversion of lignocellulosic biomass to bioethanol. This paper reviews the various process options and kinetic models adopted towards resolving the technological challenges to develop a low-cost commercial process.