Volatile fatty acid (VFA) is a crucial intermediate molecule for numerous industrial applications and can be synthesized by Clostridium strains through optimized fermentation pathways. However, the industrial-scale biotechnological production of VFAs remains a significant challenge, requiring highly efficient and cost-effective methodologies. The contemporary shift towards environmentally and economically sustainable production techniques, such as the conversion of lignocellulosic materials (LMs) into high-value chemicals and fuels, is exemplified by the consolidated bioprocessing (CBP) strategy. This innovative approach amalgamates enzyme production, saccharification, and fermentation into a single, streamlined process. Despite its potential, the realization of the high yield and productivity of VFAs from LMs through CBP remains challenging. There exists a critical need for research that establishes robust and economically viable strategies for the application of Clostridium strains and the utilization of LMs within CBP frameworks. This study aims to critically evaluate the current advancements in employing LMs as substrates for Clostridium strains and the development of integrated fermentation processes for VFA production via CBP. The outcomes of this research hold the potential to significantly advance the sustainable production of high-value chemical products and biofuels, thereby contributing to the development of more efficient and cost-effective industrial processes. By enhancing the understanding and implementation of these CBP techniques, can move closer to achieving industrial-scale VFA production while advancing the concepts of bioeconomy and circularity.