Metal clusters and nanoparticles, which have been used to tune the acidity of zeolite support, are beneficial for promoting the catalytic performance of various reaction processes, including biomass conversion. However, catalytic instabilities resulting from metal coalescence, sintering and leaching are major problems that need to be resolved. Therefore, metal encapsulation within the zeolite structure has been proposed as a feasible solution for this issue, particularly for biomass conversions that require high temperatures. In this current review, recent developments in metal confinement techniques are described along with experimental examples of biomass upgrading reactions. The present and future perspectives of zeolite-encapsulated metal catalysts in biomass conversions are also given.