An overview of the status and prospects of lignocellulosic fuels in Chile is given and placed in the broader context of biorefineries and the bioeconomy. The possible role thermochemical processes could play as a pretreatment step, production of energy carriers and biorefinery platform is reviewed. From a conceptual point of view and a practical assessment of the status quo and government policies in Chile, the large-scale production of only lignocellulosic fuels is unlikely to be implemented. The future contributions of lignocellulosic biomass to a more circular and bio-based economy in Chile are expected to be in material applications rather than fuels. Opportunities for application of thermochemical processes will come mainly from the recycling of industrial wastes and sludges, as well from the gradual implementation of the Extended Producer Responsibility Act which will oblige some producers to explore recycling technologies for their products.