Biocolours or natural pigments are derived from microorganisms, plants along with animals and have turned into sustainable substitutes in place of synthetic dyes within industries such as food, textile, cosmetics, and pharmaceuticals. Ancient civilizations throughout India, China and Egypt as well as Europe historically used natural dyes. Biocolours are attractive because they are biodegradable and eco-friendly, with functional benefits also. Microbial pigments display a quick change because of better yields, faster cycles, and bigger scalability, compared to plant versions lately. Yet challenges like poor extraction rates, higher production expenses and sensitivity for surrounding climate restrict wider market acceptance. For overcoming these hurdles, a variety of advanced extraction technologies has been created including ultrasound-assisted extraction (UAE), microwave-assisted extraction (MAE), pressurized liquid extraction (PLE), supercritical fluid extraction (SFE), and enzyme-assisted extraction (EAE). These methods are able to offer more improved pigment recovery along with a minimized solvent use in order to achieve a shorter processing time with improved pigment stability. These biocolours offer antioxidant as well as UV-protective effects that further expand health-related and commercial applications. This chapter gives an overview of the sources, extraction strategies, wide-ranging applications of biocolours, recent technological advancements, and future prospects for pigment production. It also shows that as the demand for health-supporting products increases, the acceptance of biocolours as replacements for chemical dyes steadily increases.