Energy is an indispensable part of modern society and can serve as one of the most important indicators of socio-economic development. Despite advancements in technology, however, some three billion people, primarily in the rural areas of developing countries, continue to meet their energy needs for cooking through traditional means by burning biomass resources (i.e., firewood, crop residues and animal dung) in crude traditional stoves. Such practices are known to be the source of significant environmental, social, economic and public health issues. To achieve sustainable development in these regions, it is imperative that access to clean and affordable (renewable) energy is made available. Within this context, upgrading existing biomass resources (i.e., animal manure, crop residues, kitchen waste and green wastes) to cleaner and more efficient energy carriers (such as biogas from anaerobic digestion) has unique potential to provide clean and reliable energy, while simultaneously preserving the local and global environment. In spite of its significant potential to serve developing nations, however, the high costs and lack of expertise in installation and maintenance of biogas technology preclude widespread adoption in geographically isolated communities. Concerted efforts from both governmental and non-governmental sectors are absolutely essential in facilitating modernization and dissemination of biogas technology to harness the inherent potential that is currently underutilized and unexploited. The intent of this paper seeks to highlight the present status, challenges, and potential of biogas technology to advocate for further research, development and dissemination of the concept in developing countries.