Microbial pigments are valuable sources of natural colorants because they have a variety of functions and outstanding attributes, including being non-toxic, biodegradable, and environmentally friendly. Microorganisms are valuable biofactories because they can produce pigments and other significant primary and secondary metabolites. Various microbial pigments are identified and determined, such as orange carotenoids, yellow flavins, brown melanin, purple porphyrins, red betalains, green chlorophyll, and blue phycobiliproteins. These naturally occurring microbial pigments are highly promising because of their many health benefits and industrial applications compared to the adverse effects of synthetic colorants. Pigment-producing microbes are rapid-growing species with a larger production that may be increased in the fermentative process and remain constant under different climates. The primary factors influencing productive microbial pigment include microbial selection, temperature, oxygen supply, fermentative approaches, moisture level, pH, and nutrients from carbon or nitrogen sources. The microbial pigments are extremely promising since synthetic colorants might cause allergies and toxicity. Microbial pigments also have distinct biological effects, such as antimicrobial, antioxidant, anti-aging, photoprotection, anticancer activity, anti-inflammatory, cardiovascular disease prevention, anti-obesity, and antidiabetic effects. In this chapter, the major types of microbial pigments and their functions will be discussed. Different process approaches, laboratory to large-scale bioprocesses, and the factors influencing fermentative production will be also mentioned. Additionally, the potential biological activities and applications of microbial pigments are emphasized.