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The micro gas turbine (MGT) technology is gaining momentum in distributed energy solutions. Nevertheless, this technology is predominantly fueled by fossil energy resources at present. The use of biofuels to propel micro gas turbines (MGTs) for power generation is one of the most promising ways to reduce greenhouse gas emission resulting from fossil fuel consumption in power plants and to enhance energy security. Herein, various approaches to integrate biofuels into the MGT system for power generation are reviewed. It is found that biogas-driven MGTs are in the most advanced stage of technological maturity. From an economic perspective, previous works show that combustion of biogas is most viable in a combined heat and power system compared to only power or heat generation. Nevertheless, the deployment of MGTs for commercial generation of power is scarce, which indicates that this sector is encountering some challenges. One of the major concerns about the exploitation of biofuels in gas turbines relates to fuel properties and combustion characteristics. Other challenges are also presented and discussed, and further research on the commercial production and combustion of biofuels in MGT engines is recommended.