The efficient management of biomass fly ash is a key factor for the circular economy. Fly ash is produced in large quantities during biomass combustion and may be utilized for various applications, for both environmental and financial benefits. The main limitation of biomass fly ash utilization is its unrecognized potential caused by a lack of consistent law regulations. In this paper, possible paths of biomass fly ash management are discussed. The compositions of 4 fly ashes derived from biomass combustion in Polish units are presented, together with 2 examples of phosphorous-rich ashes. The five most promising ways of management are elaborated: concrete and cement production, phosphorous recovery and fertilizers, composites, ceramics, and sorbents. The latest state-of-the-art research regarding each path is briefly reviewed and current law regulations are introduced. Limitations for the safe management of biomass ash are also discussed.