Alcoholic fermentation of fermentable carbon sources like molasses and table sugar using yeast are typical route in producing alcohol particularly known as bioethanol (C2H5OH). The key challenge encountered in bioethanol production process is to eliminate the impurity presence within the bioethanol which mainly water. Distillation is an energy extensive process which commonly used to recover ethanol up to 95% purity due to the presence of azeotropic composition. The distillation will no longer appropriate for further purification once the azeotrope composition has reached. Nonetheless, to be able to use as a viable fuel for gasoline engine or for any other utilizations where the purity is a major concern, further dehydration steps are needed producing an absolute ethanol. Few studies have been investigated on various dehydration methods for producing anhydrous ethanol, including azeotropic distillation, extractive distillation, adsorption, membrane pervaporation, and solvent extraction process. This review offers an insight into currently used technology on the ethanol dehydration methods and the future prospect on the continuous improvement particularly on the process energy requirement and efficiency will be discussed.