There is an increasing interest in the production of chemicals and fuels from renewable resources due to the continuing price increase of fossil resources, the insecurity of the availability of fossil resources in the future, and additionally environmental concerns and legislations. Biobutanol may be produced by the acetone–butanol–ethanol (ABE) fermentation. This paper reviews the biobutanol production bringing up the problems and challenges to overcome. The aim of the paper is to help in finding opportunities to make the process feasible in the near future. The analysis stresses the idea of improving the efficiency of the fermentation stage by altering the up (pretreatment of the raw material) and downstream (product recovery and purification) processes. The paper also explores the biobutanol production from the biorefinery perspective. Finally the review brings up the important role of research in developing and implementing the production of biobutanol by the ABE fermentation.