Enzymes are also known natural catalysts. Lipases are flexible enzymes that are mostly used. These enzymes are found extensively all over the animal and plant kingdoms, likewise in molds and bacteria. Among all identified enzymes, lipases have concerned the mainly biotechnological attention. This review paper discusses the characteristic, microbial origin and application of lipases. The present review discussed about different characteristics and sources (fungal, bacteria's) of lipase. The present article also discussed about different bioreactors used for lipase production and different biotechnological applications (food, detergent, paper and pulp, biofuels etc) of lipases. An observation to considerate lipases and their applications as bulk enzymes and high-value of production, these enzymes are having huge impact in different bioprocesses.