Inadequate disposal of milk whey poses significant environmental threats, including water pollution and ecological disruption. Effective disposal methods are imperative to address this issue responsibly. The current approach to mitigating these ecological concerns involves repurposing whey as a feedstock for bioethanol production. This method manages whey waste and transforms it into a valuable resource. The fermentation of lactose in whey to produce bioethanol is an innovative solution that minimizes the environmental impact of whey disposal and supports sustainable energy production. It aligns with broader initiatives to harness renewable energy sources, marking a positive step toward a more environmentally conscious dairy industry. While producing ethanol from whey may involve incorporating low-cost external carbon sources, this can lead to catabolite suppression, necessitating genetic engineering to resolve the issue. Genetic engineering can enhance ethanol yield but may increase the costs associated with large-scale distillation. This review underscores the significance of utilizing milk whey for bioethanol production through inventive fermentation technologies and interdisciplinary approaches. While these advancements hold substantial potential for reducing environmental impacts and bolstering sustainability in various industries, further efforts are essential to fully realize the potential of whey fermentation for renewable energy generation and waste reduction.