Pyrolysis oil produced using lignocellulosic material is an alternate source of energy. Pyrolysis is an attractive option for the conversion of lignocellulosic biomass into liquid, pyrolysis oil, and gaseous hydrocarbons and is considered as an emerging and challenging research area in the current scenario of renewable energy. To ensure the production of “drop-in” liquid hydrocarbons from biomass, there is urgency of integration of pyrolysis process with conventional petroleum refinery’s trillion dollars worldwide infrastructure. This will happen into reality only after going through the necessary actions and precautions at various process development stages, such as biomass pyrolysis, pyrolysis oil upgrading, and effective integration of biomass pyrolysis with refinery. Herein, the opportunities lie in upgrading of pyrolysis oil in petroleum refinery units such as catalytic cracking and steam reforming, is described. The challenges arise ahead of pyrolysis oil upgrading in fluid catalytic cracking (FCC) approach have been reviewed. The extent of pyrolysis oil coprocessing with vacuum gas oil (VGO) in a refinery FCC unit is discussed. The advances in biomass pyrolysis process integration schemes with petroleum refinery have been revealed.