Ionic liquids are effective solvents/media for the utilization of lignocellulosic biomass. The unique properties of ionic liquids enable them to effectively dissolve and/or convert the biomass into various types of products. This review aims to cover the latest progress achieved in applications of ionic liquids on biomass conversion and analysis. Specifically, several recently developed approaches on how to overcome current challenges on the use of ionic liquids in the biomass conversion were highlighted. Recent studies addressing the potential applications of ionic liquids for the production of novel biomass-derived chemicals and materials were also discussed.