Lignocellulosic (or cellulosic) biomass derived ethanol is the most promising near/long term fuel candidate. In addition, cellulosic biomass derived ethanol may serve a precursor to other fuels and chemicals that are currently derived from unsustainable sources and/or are proposed to be derived from cellulosic biomass. However, the processing cost for second generation ethanol is still high to make the process commercially profitable and replicable. In this review, recent trends in cellulosic biomass ethanol derived via biochemical route are reviewed with main focus on current research efforts that are being undertaken to realize high product yields/titers and bring the overall cost down.