Waste derived from the onion processing sector can be harnessed for the production of organic acids, polyphenols, polysachharides, biofuels and pigments. To sustainably utilize onion processing residues, different biorefinery strategies such as enzymatic hydrolysis, fermentation and hydrothermal carbonization have been widely investigated. This review discusses the recent advances in the biorefinery approaches used for valorization of onion processing waste followed by the production of different value-added products from diverse classes of onion waste. The review also highlights the current challenges faced by the bioprocessing sector for the utilization of onion processing waste and perspectives to tackle them.