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Restricted reservation and environmental impact of conventional fossil fuel forced researchers to explore substitute fuel which addresses the concern of cost, security and global warming. Consequently the aptness of various aspirants for biofuel and bioenergy is being continuously quested by the scientist and ecologist in terms of economic viability, reliability and future sustainability. Adapting blending capability with gasoline without much alteration make fuel from plant origin (biofuel) ideal candidate for alternative of petroleum based products. Nano technology via nano additatives viz. metal oxide, nanofibers, nanosheets and carbon nanotubes (CNTs) as a carrier or nanocatalyst in biofuel conversion practices further enhances biofuel production and efficiency many fold. Therefore, the present review critically discusses the conversion technologies for bioenergy and biofuel production, application of nanotechnology in their enhancement, safety challenges and future perspective.