<p>Biosurfactants are getting attention as a green, sustainable alternative to harmful synthetic surfactants in recent times. Despite having significant advantages, their widespread industrial adaptation remains limited due to several challenges in terms of production and scalability. This review provides a comprehensive explanation of the underlying fermentative routes to show how pathways control biosurfactant synthesis, influence yield, and determine functionality, and recent advancements in biosurfactant research, focusing on innovative strategies to overcome the bottlenecks. Recent breakthroughs, such as the utilization of agro-industrial and food-processing waste as low-cost, renewable feedstocks, have significantly improved the economic feasibility of biosurfactant production. The introduction of different advanced bioreactor designs and innovative feeding strategies with real-time monitoring capabilities and integrated downstream processing has further enhanced process efficiency and overall productivity. Beyond metabolic and genetic engineering, integrating AI–ML tools for process modelling, optimization, and predictive analytics offers a promising route to higher yields and efficient high-throughput screening. The review also highlights the expanding applications of biosurfactants beyond the conventional, such as in combating antimicrobial resistance, targeted drug delivery systems, nanotechnologies, and biosensor technologies. Together, these advances mark a paradigm shift, positioning biosurfactants as key enablers of future green technologies in pharma, environment, agriculture, and energy.</p> Graphical abstract <p></p>