The growing environmental threat posed by plastic waste (PWs) and microplastics (MPs) has spurred the need for innovative and sustainable waste management solutions. Biofuel production from PWs through microbial technology presents a promising approach to mitigate PW pollution while generating renewable energy. This review explores the current advancements in the bioconversion of PW and MPs waste into biofuels, focusing on microbial degradation and conversion mechanisms. Various microbial strains, including bacteria, fungi, and engineered microorganisms, have demonstrated their capacity to degrade PWs such as polyethylene (PE), polypropylene (PP), and polystyrene (PS) into smaller compounds, which can be further processed into biofuels. Key technologies, such as anaerobic digestion, fermentation, and enzymatic biodegradation, are reviewed for their efficiency in converting PW into bioenergy. The use of microbial consortia and genetically modified microbes enhances the biodegradation process, making it more efficient and feasible at industrial scales. Additionally, this review discusses the challenges associated with PW depolymerization, the toxicity of MPs, and the scalability of microbial technologies for large-scale biofuel production. Emphasis is placed on recent innovations in metabolic engineering to optimize microbial pathways for PW degradation and fuel production. The integration of microbial technology with waste management systems offers a circular economy approach, turning PW into valuable resources. This article provides a comprehensive overview of the potential and limitations of microbial technologies for biofuel production from PW, aiming to contribute to a sustainable future in waste-to-energy conversion.