The explosive energy demand and the exponential rate of depletion of fossil reserves, coupled with the need for proper biomass and waste management have led the world to the conversation of circular economy. Thermochemical conversion processes have piqued interest due to their ability to convert waste feedstocks into fuels and chemicals in a sustainable manner. Hydrothermal liquefaction and carbonization are thermochemical technologies, which convert waste feedstock into valuable chemicals and energy using water near its critical conditions. The major products from hydrothermal processes are bio-crude, hydrochar, aqueous, and gaseous phases. However, the major drawback of the hydrothermal process is the need for freshwater which has limited its application on a commercial scale. In order to overcome this challenge, hydrothermal liquefaction and carbonization were conducted using water from different sources (Tap water, seawater, recycled water, and industrial wastewater), as well as by recirculating the aqueous phase from previous experiments. The effect of aqueous phase recirculation and water quality on product yields and quality will be discussed in detail. The path forward with a major focus on the applications and commercialization of hydrothermal liquefaction will also be briefly discussed in this session.