The coconut tree (Cocos nucifera) stands as a pivotal resource in tropical regions, playing a crucial role in both subsistence and economic activities across Asia, the Pacific Islands, and South America. While the harvesting of coconut fruit is essential for producing globally utilized edible products, such as coconut oil, by small owners and large producers around the world in the food, cosmetics, and pharmaceutical industries, concerns have arisen due to the substantial amount of agro-industrial residue generated in this process, posing environmental risks if they are not properly managed. Recognizing the environmental challenges, this paper emphasizes the transformative potential inherent in coconut waste, characterized by its lignocellulosic composition rich in lignin and multifunctional groups. By delving into the historical context of coconut economic exploration and its chemical composition, this review explores the diverse applications of coconut products, focusing on the utilization and processing of residues to generate sustainable products and byproducts. Ultimately, this comprehensive review underscores the significance of repurposing coconut waste, not only to mitigate the environmental impact but also as a valuable contributor to a circular economy, promoting the use of the lignocellulosic biomass in research and bolstering its role as a raw material in the chemical and energy sectors.