<p>Biomass, the world’s fourth-largest energy source, is a renewable and sustainable resource for diversifying the global energy supply. Pyrolysis is a promising thermochemical conversion technology that rapidly transforms biomass into bio-oil, a valuable liquid product capable of yielding high-value chemicals and fuels. Nevertheless, the conventional reactors hinge on their bio-oil production efficiency and high energy costs. We propose a skid-mounted biomass pyrolysis plant designed to overcome these limitations. In addition, the complex and impure nature of crude bio-oil from the conventional conversion of biomass to bio-oil, characterized by a high content of reactive oxygenated compounds, necessitates effective separation and upgrading to enable its practical application. This review also examines the current state of biomass pyrolysis-to-oil technology. It explores advancements in pyrolysis processes and reactor designs, providing a global perspective on their development and scalability. A significant focus is placed on the critical challenge of bio-oil refining, where we present a detailed analysis of the leading separation technologies, including physical and chemical refining and separation techniques, distillation, membrane separation, chromatographic, and supercritical extraction methods. We evaluate their respective advantages, limitations, and potential for industrial implementation. By synthesizing this information, the review provides an assessment of the pathway to commercializing bio-oil. It concludes that while significant progress has been made, strategic integration of separation processes and targeted catalyst development are essential to overcome existing technical and economic barriers, ultimately unlocking the full potential of bio-oil as a sustainable source of fuels and chemicals.</p>