In current scenario, due to environmental concerns an indeed requirement to address climate change by minimizing the reliance on finite fossil fuel resources applied in worldwide transportation. This problem could be possibly mitigated though the exploration of alternative fuels towards achieving sustainable transportation. Alternative fuels, derived from non-conventional sources such as biomass, hydrogen, electricity, and natural gas, are highly beneficial for the economic as well as environments perspective. The benefits of alternative fuels are multifaceted: they reduce greenhouse gas emissions, diminish reliance on finite fossil fuels, and promote energy security by diversifying energy sources. Hence, this work compile numerous of dedicated work on current landscape of alternative fuels, highlighting their potential to mitigate environmental impacts, enhance energy security, and foster economic development. Furthermore, an in-depth discussion on the future potential of alternative fuels and adoption challenges such as technological readiness, infrastructure development, and policy support was made. This manuscript also covers the transition to alternative fuels, which is fraught with challenges for worldwide governments like infrastructure limitations, high production costs, and technological barriers inhibit widespread adoption. looking forward, advancements in technology, such as improved energy storage systems, efficient conversion processes, and enhanced blending in conventional fuels, hold promise for overcoming current limitations are also explored. Hydrogen fuel cell derived from renewable biomass sources, offer a carbon-neutral alternative to conventional gasoline and diesel, with options such as ethanol and biodiesel gaining prominence are thoroughly discussed.