Microbial cells accumulate pigments under certain culture conditions, which have very important industrial applications. Microorganisms can serve as sources of carotenoids, the most widespread group of naturally occurring pigments. More than 750 structurally different yellow, orange, and red colored molecules are found in both eukaryotes and prokaryotes with an estimated market of $ 919 million by 2015. Carotenoids protect cells against photooxidative damage and hence found important applications in environment, food and nutrition, disease control, and as potent antimicrobial agents. In addition to many research advances, this paper reviews concerns with recent evaluations, applications of microbial pigments, and recommendations for future researches with an understanding of evolution and biosynthetic pathways along with other relevant aspects.