Advances in industrial biotechnology offer potential opportunities for economic utilization of agro-industrial residues such as sugarcane bagasse. Sugarcane bagasse, which is a complex material, is the major by-product of the sugar cane industry. It contains about 50% cellulose, 25% hemicellulose and 25% lignin. Due to its abundant availability, it can serve as an ideal substrate for microbial processes for the production of value-added products. Attempts have been made to produce from bagasse substrate protein-enriched animal feed, enzymes, amino acids, organic acids and compounds of pharmaceutical importance, etc. Often, a pre-treatment process has resulted in improved substrate utilization by the microbes. Application of solid-state fermentation technology could be an attractive possibility for such bioconversions. This article reviews the recent developments on processes and products developed for the value addition of sugarcane bagasse through the biotechnological means. Emphasis has been given on more recent developments of the past 8-10 years.