Woodchips serve as a renewable and important readily available by-product of the forestry and timber sectors that can be utilized as biofuels through several methods, one of which is biocatalysis. The recent developments in biocatalysis have greatly increased the efficiency of converting wood chips into usable biofuels. Biocatalytic techniques utilize enzymes, microorganisms, and biocatalysts to decompose the intricate lignocellulosic structure of wood chips into fermentable sugars, bioethanol, biobutanol, or other forms of biofuels. The woodchips are primarily composed of cellulose, hemicellulose, and lignin, which are intricate polymers that are converted into biofuels. Prior to the biocatalysis process, woodchips typically undergo a pre-treatment process to break the lignin and other structural elements, allowing the cellulose and hemicellulose to unbind for better enzymatic breakdown. Some researchers are concentrating on producing biocatalysts which are capable of degrading both cellulose and lignin at the same time, which improves the overall process. For instance, modified enzymes or fungi such as Trichoderma reesei or species of Penicillium are utilized to improve cellulose hydrolysis, while microbes that degrade lignin are being modified for effective lignin decomposition. Enzymatic reactions play a crucial role in enhancing the efficiency of this conversion, and advancements in the development of biocatalysts are further enhancing the economic and technical viability of using woodchips as a biofuel source. This study examines the significance of biocatalysis in enhancing the conversion of wood chips into biofuels, emphasizing key enzyme systems such as cellulases and lignin-degrading enzymes that aid in the breakdown of cellulose, hemicellulose, and lignin components.