This paper presents the state of the art of the current status, techniques used for conversion, possible future prospects, policies and challenges of biomass energy in the context of Bangladesh. It is seen that the utilization of biomass energy is increasing day by day. Biomass has the potential capacity to contribute around 400 EJ/yr in the future global energy supply by the year 2050 ensuring the adaptability of Sustainable Development Goal 7 (access to affordable, reliable, sustainable and modern energy for all). However, in many cases, lack of modern technology augmented by socioeconomic challenges is creating a tremendous hindrance to the way of extracting and utilizing the biomass energy at a higher efficacy. The authors believe if well-researched plans and techniques are adapted specifically for Bangladesh, and followed accordingly, it is possible to mitigate this hindrance to a great extent. The authors have also proposed some recent techniques that might be feasible in the context of Bangladesh.