This review's objective is to comprehensively gather knowledge and understanding of the production of insulating components for constructions that employ lignocellulose waste. Currently, the construction sector is responsible for over 40% of global energy use. Lignocellulose waste products are abundantly available around the world, and obtaining positive environmental impacts requires their effective repurposing. With a few easy modifications and binders, waste lignocellulosic material may be used right away as a thermal insulator. The requirement for effective thermal insulation, thermal conductivities 0.1 W/m.K., is routinely met by these materials. To improve the physicochemical properties of thermoplastics and thermosets and make them appropriate as thermal insulators, lignocellulosic waste can be used as a filler or reinforcement ingredient. This strategy is in line with sustainability standards and allows for the substitution of renewable materials for 30–50% of the polymer content. These investigations also provide thermal conductivity values below 0.1 W/m.K. Furthermore, considering the interest in integrating lignin-based residues into the modification of polymers that break down to create heat-insulating materials, treated lignocellulose, cellulose, and related substances (such as nanocellulose whenever microcrystalline cellulose) may be used as affordable materials for producing biodegradable insulators. This review offers a comprehensive examination and comparison of various strategies, giving researchers ideas for developing new research techniques and filling current knowledge gaps.