Industrial biotechnology leverages biological systems to produce chemicals, materials, and energy sustainably. This comprehensive review explores innovations in bioprocessing and biomanufacturing, emphasizing advancements like synthetic biology, continuous manufacturing, and the integration of AI and machine learning. These technologies enhance efficiency, scalability, and sustainability across various applications, including pharmaceuticals, biofuels, food, agriculture, and environmental management. Despite challenges such as high costs, regulatory compliance, and environmental concerns, the future of industrial biotechnology is promising. Emerging trends, including Industry 4.0 technologies, sustainable bioprocessing, and interdisciplinary collaboration, are set to drive further innovation. By addressing these challenges and leveraging new technologies, industrial biotechnology has the potential to revolutionize multiple industries, contribute to global sustainability goals, and foster a bio-based economy. This review underscores the transformative potential of biotechnological advancements in driving sustainable industrial processes and meeting global challenges in healthcare, energy, and environmental conservation.