Cellulase enzymes serve as crucial tools in tackling the environmental issues caused due to lignocellulosic waste materials. These wastes comprising cellulose, hemicellulose, and lignin have traditionally led to environmental issues due to their improper disposal in urban areas. In this aspect, cellulase provides a sustainable solution to numerous industries, including biofuel production, waste management, paper and pulp, detergent manufacturing, and food and beverage processing. The incorporation of cellulase in these industrial processes not only promotes economic viability but also complies with the goals of global sustainability. Cellulase catalyzes the transformation of cellulosic wastes into fermentable sugars which is an essential step in the production of biofuels like ethanol and butanol; therefore, valorization of these wastes utilizing cellulase has drawn attention globally to promote cleaner energy choices while reducing dependency on fossil fuels and greenhouse gas emissions. In recent years, the use of cellulase enzymes to support environment-friendly practices has undergone an extensive change due to some current advances such as the production of bioengineered cellulases with improved characteristics and immobilized enzymes designed for the effective breakdown of complex lignocellulosic materials. Furthermore, pretreatment techniques have been developed to improve the susceptibility of lignocellulosic wastes to enzymatic hydrolysis, and enzymes can be made more stable and reusable by immobilizing them on solid supports. The fabrication of biofuels has been streamlined by simultaneous fermentation and saccharification processes, and cellulase-based methods are being increasingly included in biorefineries, enabling the production of important biochemicals and bioplastics in addition to biofuels. With these developments, there is the possibility of a cleaner environment, less reliance on fossil fuels, and a shift to a more sustainable industrial landscape.