Lignocellulosic biomass has become a key component of biorefinery systems, providing pathways to produce value-added bioproducts and sustainable biofuels. Among underutilized resources, Sesamum indicum agricultural residues (SIAR) stand out due to their abundance, limited current applications, and severe environmental consequences from open-field burning, a practice linked to air pollution and carbon emissions. This mismatch between resource availability and utilization underscores the need to develop circular-economy models for sesame biomass valorization. This review analyses and provides insight into global research trends, identifying key gaps in pretreatment strategies and thermochemical conversion processes that hinder the cost-effective, sustainable utilization of SIAR. Beyond environmental benefits, the SIAR has a theoretical sustainable energy potential of 3.11 × 1010 GJ, underscoring its role in decarbonizing energy systems. However, achieving this potential requires targeted technological innovation to address scalability challenges and energy-intensive processing methods. In this work, we also discuss a roadmap for next-generation biorefineries, prioritizing integrated systems that synergize biochemical and thermochemical pathways. The findings advocate for multidisciplinary research to align economic feasibility with sustainability and circular bioeconomy frameworks.