Bioenergy as a source of sustainable energy production from organic wastes has exaggerated research in this area in the past few years. Bio-ethanol, bio-diesel, and bio-electricity produced from a hybrid bioreactor consisting a combination of the fermentor, photobioreactor, and microbial fuel cell, has shown a promising result in producing eco-friendly fuel with economical benefits. Apart from the energy production, these systems have been used in waste water treatment, feeds for animals, beverages, and production of commercial gases like biogas (methane from anaerobic digester), oxygen, nitrogen etc. by employing advanced technology. However many drawbacks are also there in the system which can be resolved by producing genetically engineered strains and use of advanced techniques in the processing like pretreatment and isolation of the bioenergy from the system and use of advanced probes for better conduction of the current in microbial fuel cell. We conclude that for economical and effective alternative source of sustainable energy, the hybrid bioreactor can be a potential future with further more advancement.