Compared with the conventional fossil fuel, bioenergy has obvious advantages due to its renewability and large quantity, and thus plays a crucial role in helping defend the energy security. However, the bioenergy development may potentially cause serious environmental alterations, which remain unclear. The study summarizes the environmental impacts of bioenergy production based on the compilation and published data. Our analysis shows that more and more attention is being paid to the environmental protection as the development of bioenergy, and among the influencing terms of bioenergy production, water issues (i.e., water quantity and quality) gain the greatest concern, whereas the least attention has been given to soil erosion. Although we recognize that the bioenergy production can indeed exert negative effects on the environment in terms of water quantity and quality, greenhouse gas emissions, biodiversity and soil organic carbon, and soil erosion, the adverse impacts varied greatly depending on biomass types, land locations, and management practices. Identifying the reasonable cultivation locations, appropriate bioenergy crop types, and optimal management practices can be beneficial to environment and sustainable development of bioenergy. In this field, Chinese bioenergy production has lagged behind and does not match its rising energy consumption, but it has a great potential of and demand for biomass-based energy especially under its urbanization, in spite of the negative environmental impacts. Therefore, this article is expected to serve as a reference and guideline on what has been done in the bioenergy-oriented countries that might stimulate development of more effective and environmentally sound guidelines for promoting bioenergy production in China and other developing countries as well.