Diminishing levels of crude oil are hinting towards an inevitable global shortage of fuels and it is imperative to look for the alternate sources of crude oil at this hour. Lignocellulosic biomass emerges as a neutral carbon footprint resource rather than just an organic solid waste. Lignocellulosic biomass is the most abundant renewable bioresource material on Earth, primarily made up of cellulose, hemicellulose, and lignin, firmly associated with each other. It is a key alternate resource that could be used for producing various value-added chemicals and biofuels through thermochemical methods of conversion. However, bio-oil produced from lignocellulosic biomass has undesirable properties like low heating value, chemical instability, high, viscosity and corrosivity, limiting its use as a drop-in fuel, thus, needs upgrading. The study explores the recent advancements in thermochemical conversion technologies, including catalyst effects, innovative technologies, environmental impact and potential commercialization. By highlighting the present state of the field and identifying potential future directions, this chapter aims to provide a comprehensive overview of the advancements and challenges in converting lignocellulosic biomass into bio-crude. Additionally, the chapter discusses future directions for this technology.