The rapid depletion of fossil-based resources, together with the increasing global energy demand, has stimulated intensive research into renewable alternatives. Among these, biomass-derived fuels have emerged as highly promising candidates, with particular attention given to furan derivatives for their versatile chemical reactivity and potential as liquid transportation fuels. While the production of 5-hydroxymethylfurfural (HMF) has been extensively studied, the synthesis of 5-chloromethylfurfural (CMF) has recently attracted growing interest as a novel platform molecule. CMF offers several advantages over HMF, including milder reaction conditions, lower polarity that facilitates separation in organic media, and the presence of chlorine as an excellent leaving group, enabling efficient downstream transformations. Notably, CMF can be converted into high-value compounds such as 2,5-dimethylfuran (DMF), a biofuel with favorable physicochemical properties for transportation applications. This review highlights recent advances in CMF production from lignocellulosic biomass, synthetic strategies for its valorization into DMF and other value-added chemicals, as well as the feasibility of scaling up these processes toward industrial implementation.