An essential enzyme in the breakdown of xylan, a crucial hemicellulosic component of plant walls, xylanase has become a mainstay in a number of commercial applications, such as the pulp and paper, food processing, and biofuels sectors. Numerous xylanase-producing species with distinct enzymatic characteristics can be found in microbial sources, including bacteria, fungus, and actinomycetes. The biochemical traits of microbial xylanases that make them suitable for a variety of industrial processes are examined in this chapter, including their activity profiles, substrate selectivity, and ideal working conditions. The stability, efficiency, and specificity of these enzymes have been further enhanced by advancements in protein and genome engineering, expanding the range of uses for them. New methods like metagenomics and omics-driven approaches have made it easier to find new xylanases with better characteristics, but immobilization immobilization strategies have enhanced enzyme reusability and cost-efficiency. The integration of microbial xylanases into biorefinery systems underscores their role in promoting sustainable industrial practices and a circular bioeconomy. This chapter highlights current trends and provides a roadmap for future innovations in microbial xylanase research and applications, emphasizing their potential to transform industrial processes and address global sustainability challenges.