In this review, a comprehensive and illustrious survey is made of the appli
ed aspects of microbial lipases in modern biotechnological practices. Lipas
es are the most versatile biocatalyst and bring about a range of bioconvers
ion reactions such as hydrolysis, interesterification, esterification, alco
holysis, acidolysis and aminolysis. After a brief description of the microb
ial sources of lipases, the pivotal role of lipases in the processes and pr
oducts of the food and flavourings industry is illustrated. An ii lustratio
n is presented of biomedical applications. The panorama of lipases in the m
anufacture of fine chemicals is depicted with special emphasis on pharmaceu
ticals, pesticides, cosmetics, biosensors and detergents. Widening applicat
ions such as those in waste management and improved tanning techniques are
other novel aspects of lipase utilization that are discussed in this review
.