The increasing demand for petroleum-based polyethylene terephthalate (PET) grows population impacts daily. A greener and more sustainable raw material, lignocellulose, is a promising replacement of petroleum-based raw materials to convert into bio-PET. This paper reviews the recent development of lignocellulose conversion into bio-PET through bioethanol reaction pathways. This review addresses lignocellulose properties, bioethanol production processes, separation processes of bioethanol, and the production of bio-terephthalic acid and bio-polyethylene terephthalate. The article also discusses the current industries that manufacture alcohol-based raw materials for bio-PET or bio-PET products. In the future, the production of bio-PET from biomass will increase due to the scarcity of petroleum-based raw materials.