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Sugarcane bagasse and straw can be converted into pulps, oils, controlled-release formulations, chelating agents, and composites. This article reviews bagasse and straw conversion efforts in Brazil. Laboratory-scale processes were developed aiming at the integral use of these biomass byproducts. Organosolv pulping and oxidation of lignin are the most promising processes for the rational use of sugarcane residues. Fungal pretreatment and spectroscopic characterization are also discussed.