Bamboo processing mills produce a substantial quantity of bamboo trash, which can reach up to 50% of the total bamboo utilized. Liquefaction presents an effective alternative for the utilization of bamboo wastes. Transforming this biomass into polyols by atmospheric liquefaction techniques, followed by its application in bio-polyurethane production, would significantly enhance the value of the bamboo business. Frequently employed liquefaction techniques may occur at elevated temperatures (150–250 °C) and atmospheric pressure, utilizing either acid or alkali catalysis, with the former being more prevalent. Numerous aspects must be considered in this process, with the most critical being the types of lignocelluloses, the ratios of the ingredients, and the temperature and duration of the reaction. The capacity of lignocellulosic biomass to diminish or substitute the extensive application of petroleum-derived liquefaction solvents in the market is anticipated to grow with improvements in liquefaction methods employing bio-based solvents. Although bio-polyurethane derived from biomass exhibits dark coloration, various ways have been documented to mitigate this problem. Contemplating the transformation of bamboo waste into light-hued polyols can then be employed in the manufacture of semi-transparent bio-polyurethane.