The bio-based refinery has evolved as a strong alternative to the fossil-based refinery. Fossil fuels have been critical to meet the global energy and chemical needs. The rapid utilization of fossil fuel reserves and environmental deterioration has led to the search for alternative sources. The naturally occurring biomass (forest residues, microalgae), and waste biomass generated through different anthropogenic activity (agricultural residues, industrial wastes) have emerged as a potential substitute for the fossil fuels. These biomasses consists of complex polymers such as cellulose, lignin, hemicelluloses, starch, pectin, lipids that can be used as starting material for fuels and building block chemicals. This biomass can be converted to suitable liquid or gaseous fuel and essential chemicals through a series of steps. Such an approach is called bio-based refinery as analogous to the petroleum refinery. The role of different hydrolytic enzymes is important to the biobased refinery. These enzymes act on different biomass components and result in the generation of specific oligomers and monomers. These oligomeric and monomeric compounds are subsequently converted to biofuels and biochemicals. The enzymes are industrially produced by various microorganisms and have characteristics of structural and mechanistic properties. There are several limitations associated with the application of enzymes in biorefineries. Therefore, to overcome the existing limitations of enzyme-based technologies in biorefinery there is a need to understand the current status of these hydrolyzing enzymes and enzyme-mediated technologies. The review will first give an insight into enzyme structure, mode of action, and its current role in the biobased biorefinery. This review also focuses on recent advances, techno-economic and environmental concerns associated with enzyme assisted biobased refinery. The review suggests that the application of the advanced biotechnological approach can help in the development of a consolidated bioprocessing approach. This approach will further lead to futuristic and self-sustainable “integrated biorefineries” that can fulfill the dream of “circular bioeconomy” with zero-waste.