Lactobionic acid, widely used in the pharmaceutical, cosmetic, and food industries, is produced through chemical and biological methods, each with distinct advantages and challenges. This review examines the key approaches to its production, highlighting the chemical oxidation of lactose and biotechnological processes using microbial and enzymatic systems. Chemical methods offer high yields and rapid production but are often hindered by environmental concerns and lower product purity. In contrast, biological methods provide eco-friendly alternatives with superior product quality, albeit with limitations in scalability and higher initial costs. The comparison in this overview focuses on productivity, cost efficiency, purity, and environmental impacts, underscoring the potential of biological methods to align with sustainability goals. This review highlights further advances in biological approaches and explores hybrid solutions that combine the strengths of both methods for optimal lactobionic acid production.