Owing to the significant amounts produced each year, food waste is a critical issue that affects the economy, society, and environment. An estimated US$ 1 trillion food is wasted annually because of the supply chain and harvesting processes, which lose around one-third of the net production. This significant loss has sparked global concern, there is an urgent need for sustainable approaches to reduce food waste or to propose an economical route for its utilization. Major concerns associated with its improper management include environmental degradation and the exacerbation of greenhouse gases. This review provides a comprehensive understanding of the recent advances in measures to minimize food waste (FW) and its chemical and biotransformation into valuable products. Food waste comprises mainly carbohydrates, proteins, and oils; the former two components are commonly used as microbial feedstock, leaving behind the residual oil fraction which poses a greater environmental risk. Microbial transformation of these hydrophobic materials present in food waste into value-added products proves to be a sustainable and economical strategy. Thus, this study proposes an integrated biorefinery strategy for holistic valorization of FW, whereby all its components were used to produce value-added compounds such as biofuels, bioplastics, nutraceuticals, and biomaterials using microbial biocatalysis. Compared to conventional methods, an integrated biorefinery will be more sustainable and uplift the microbial processes by switching from ‘pure’ to food waste-derived substrates and thereby pave ways to achieve ‘green’ transition.