The use of hydrothermal liquefaction and biocrude upgradation technologies for lignocellulosic residue feeds is a lucrative pathway to meet growing sustainable transport fuel demands while avoiding disruption of critical food supply chains. Hydrothermal liquefaction is gaining attention from corporate and academic spheres for its feedstock flexibility; however, produced biocrude faces challenges in reaching fuel-level stability, acidity, viscosity, and heating value, primarily through high oxygen content. As a result, established upgradation for conventional crude oil is being adapted to biocrude upgradation, such as physical distillation and thermochemical hydrotreatment. The infancy of hydrothermal liquefaction and biocrude upgradation techniques remains the biggest opponent for this pathway, with uncertainty in economic as well as technical feasibility. An emerging fuel production pathway ideal for natural resource-abundant countries, this chapter covers ideal lignocellulosic feedstock in a Canadian context, hydrothermal liquefaction and its parameter effects, as well as established biocrude upgradation techniques to produce transportation fuels.